MIRA INFORM REPORT
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Report Date : |
02.10.2012 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI KRUPP STAINLESS CO., LTD. |
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Registered Office : |
No. 21, |
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Country : |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
07.04.1998 |
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Com. Reg. No.: |
310000400191427 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling stainless products |
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No. of Employees : |
500 |
RATING & COMMENTS
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MIRA’s Rating : |
B |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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Status : |
Moderate |
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Payment Behaviour : |
No Complaints |
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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
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Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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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
SHANGHAI KRUPP STAINLESS Co., Ltd.
NO. 21, TONGYAO
ROAD, pudong new district,
shanghai, 200126 PR
CHINA.
TEL: 86 (0)
21-38874887 FAX: 86 (0) 21-58741110
EXECUTIVE SUMMARY
INCORPORATION DATE : april 7, 1998
REGISTRATION NO. : 310000400191427
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
500
REGISTERED CAPITAL : usd 428,900,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,274,760,000 (AS OF DEC.
31, 2009)
EQUITIES :
CNY 238,880,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE (as of Dec. 31, 2009)
FINANCIAL CONDITION : FAIR (as of Dec. 31, 2009)
OPERATIONAL TREND : FAIR (as of Dec. 31, 2009)
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY
6.2857 = 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
Note: The “No. 12, Yaolong Road” refers to
the same place as the heading one.
SC was registered as a Chinese-foreign equity
joint venture enterprise at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license) on April 7,
1998.
Company Status: Chinese-foreign equity joint venture
enterprise This form of business in PR China is defined as a legal
person. It is a limited co. jointly invested by one or more foreign
companies and one or more PR China controlled companies within the
territories of PR China according to a certain proportion of capital
investment. The investing parties exercise business management, share
profits and bear all risks and liabilities of the co. together. The equity
joint venture law requires that foreign party contribute not less than 25%
of the registered capital, with no maximum. The joint venture usually have
a limited duration of 10 to 50 years. Enterprise with large investment,
long construction periods, low investment returns, introducing of advanced
technology & advanced technology products which have good competition
position in international market may extend beyond the 50 years limit.
SC’s registered
business scope includes manufacturing stainless steels and its products,
selling self-made products in domestic and abroad, providing related technology
consulting, technology services, and after-sale services (with permit if
needed).
SC is mainly
engaged in manufacturing and selling stainless products.
Mr. Cui Jian is legal representative and chairman of SC at
present.
SC is known
to have approx. 500 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 Shanghai. Our checks
reveal that SC owns the total premise about 424,000 square meters.
http://www.skschina.com/
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
Email: sales@skschina.com
; billy.tan@skschina.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2002 |
Legal representative |
Chen Haisheng |
Hu Xuefa |
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2010-1 |
Legal representative |
Hu Xuefa |
Lou Dingbo |
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Unspecified |
Shareholder’s name |
Shanghai Pudong Steel Co., Ltd. |
Baosteel Group Shanghai Pudong Iron &
Steel Co., Ltd. 40 |
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Registration No. |
024761 |
310000400191427 |
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Legal representative |
Lou Dingbo |
present one |
SC’s quality system meets the international standards of ISO 9001.
MAIN SHAREHOLDERS:
Name %
of Shareholding
ThyssenKrupp Nirosta GmbH (Germany) 60
Baosteel Group Shanghai Pudong Iron & Steel
Co., Ltd. 40
ThyssenKrupp Nirosta GmbH
======================
Together with its affiliated companies
ThyssenKrupp Acciai Speciali Terni, ThyssenKrupp Mexinox and Shanghai Krupp
Stainless, ThyssenKrupp Nirosta is one of the world's leading manufacturers of
stainless flat products with a wide-ranging portfolio of grades, sizes and
finishes.
Web: http://www.thyssenkrupp-nirosta.de/
Baosteel Group Shanghai Pudong Iron &
Steel Co., Ltd.
========================================
Incorporation date: May 23, 1996
Registration no.: 310115000334789
Registered capital: CNY 3,144,736,700
Legal representative: Zhu Hua
Legal form: One-person Limited Liability
Company
l
Legal representative and chairman:
Mr. Cui Jian is currently
responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman and legal
representative
SC is mainly engaged
in manufacturing and selling stainless products.
SC’s products
mainly include cold rolled wide strip, slit strips and sheets, austenitic and
ferrite grades, etc.
SC sources its materials 50% from domestic
market, and 50% from overseas market, mainly Germany and Italy. SC sells 90% of
its products in domestic market, and 10% to overseas market.
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 Suppliers:
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Zhangjiagang Pohang Stainless Steel Co., Ltd.
*Major Customers:
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Qingdao Haier
Parts Purchasing Co., Ltd.
Shanghai Yiyou
Metal Products Co., Ltd.
SC is known to have the following branch:
Shanghai
Krupp Stainless Co., Ltd. Beijing Branch
Registration
no.: 110000420045354
Principal:
Gong Qichang
Incorporation
date:
Address:
7/F East Ocean Center,
E-mail: salesbj@skschina.com
Tel:
010-65155598
Fax:
010-65156206
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
refused 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.
Industrial & Commercial Bank of China Shanghai Branch No. 2 Office
AC#：021907-1001190709016261997
Relationship:
Normal.
Balance Sheet (as of Dec. 31, 2009)
Unit: CNY’000
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Cash & bank |
79,760 |
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Inventory |
482,370 |
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Accounts
receivable |
57,860 |
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Advances to
suppliers |
5,480 |
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Other
receivables |
3,520 |
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Other current
assets |
390 |
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------------------ |
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Current assets |
629,380 |
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Fixed assets net
value |
1,399,280 |
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Projects under
construction |
4,240 |
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Long term
investment |
1,660 |
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Intangible
assets |
370,900 |
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Other assets |
0 |
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Total assets |
2,405,460 |
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Short loans |
1,000,000 |
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Accounts payable |
176,430 |
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Other payable |
13,370 |
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Taxes payable |
-13,700 |
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Advances from
customers |
35,580 |
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Accrued expenses |
26,730 |
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Long-term
liabilities due with in one year |
201,580 |
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Other current
liabilities |
20 |
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Current
liabilities |
1,440,010 |
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Long term
liabilities |
726,570 |
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Total
liabilities |
2,166,580 |
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Equities |
238,880 |
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Total
liabilities & equities |
2,405,460 |
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Income Statement (as of Dec. 31, 2009)
Unit: CNY’000
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Turnover |
1,274,760 |
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Cost of goods
sold |
1,665,700 |
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Add: Income from
other operations |
6,280 |
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Sales expense |
6,710 |
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Management expense |
-183,920 |
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Finance expense |
92,380 |
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Non-operating
expense |
476,800 |
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Profit before
tax |
-771,320 |
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Less: profit tax |
0 |
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Profits |
-771,320 |
Note: SC’s
management declined to release SC’s latest financial information.
Important Ratios
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as
of Dec. 31, 2009 |
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*Current ratio |
0.44 |
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*Quick ratio |
0.10 |
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*Liabilities
to assets |
0.90 |
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*Net profit
margin (%) |
-60.51 |
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*Return on
total assets (%) |
-32.07 |
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*Inventory
/Turnover ×365 |
138 days |
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*Accounts
receivable/Turnover ×365 |
17 days |
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*Turnover/Total
assets |
0.53 |
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* Cost of
goods sold/Turnover |
1.31 |
PROFITABILITY:
POOR
l
The turnover of SC appears good in its line.
l
SC’s net profit margin is poor.
l
SC’s return on total assets is poor.
l
SC’s cost of goods sold is TOO HIGH, comparing with
its turnover.
LIQUIDITY: POOR
l
The current ratio of SC is maintained in a poor
level.
l
SC’s quick ratio is maintained in a poor level.
l
The inventory of SC appears large in 2009.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan appears TOO LARGE in 2009.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: FAIR
l
The debt ratio of SC is high.
l
The risk for SC to go bankrupt is above average.
Overall financial
condition of the SC: Fair (as of Dec. 31, 2009).
SC is considered medium-sized in its line with a development history of 14
years. Due to lack of latest financial status, we are unable to recommend
accurate credit limit for SC.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
|
US Dollar |
1 |
Rs.52.78 |
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|
1 |
Rs.85.16 |
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Euro |
1 |
Rs.67.78 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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 |
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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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.