MIRA
INFORM REPORT
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Report Date : |
24.04.2013 |
IDENTIFICATION DETAILS
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Name : |
NORTH CHINA ALUMINIUM CO., LTD. |
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Registered Office : |
No. 2 Lidaoyuan Road, Taoyuan District, Zhuozhou City, Hebei Province, 072750 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2009 |
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Date of Incorporation : |
09.12.1993 |
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Com. Reg. No.: |
130000400001590 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Subject engaged in processing aluminum, manufacturing and selling aluminum foil and so on. |
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No. of Employees : |
2,500 |
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 : |
Unknown |
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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
|
Country Name |
Previous Rating (31.03.2011) |
Current Rating (30.06.2012) |
|
China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe
contributed to China's, and is expected to further drag Chinese growth in 2013.
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
NORTH CHINA
ALUMINIUM CO., LTD.
NO. 2 LIDAOYUAN ROAD, TAOYUAN DISTRICT,
ZHUOZHOU CITY,
HEBEI PROVINCE, 072750 PR CHINA
TEL: 86 (0) 312-3805048/3805428
FAX: 86 (0) 312-3661041
EXECUTIVE SUMMARY
INCORPORATION DATE : DEC. 9, 1993
REGISTRATION NO. : 130000400001590
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
2,500
REGISTERED CAPITAL : CNY 478,100,000
BUSINESS LINE :
MANUFACTURING, processing and trading
TURNOVER :
cny 1,466,240,000 (AS OF DEC. 31, 2009)
EQUITIES :
cny 562,010,000 (AS OF DEC. 31, 2009)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE (AS OF DEC. 31, 2009)
OPERATIONAL TREND : steady
GENERAL REPUTATION : well-known
EXCHANGE RATE :
CNY 6.18= 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 Ren Min Bi
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 Dec. 9, 1993.
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 investing parties
are free to agree on method of profit distribution and liabilities bearing
according to the proportion of capital investment. Each investing parties
contributes funds, tangible assets, technology & etc. The board of
directors excises the high authority. The joint venture usually has 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 that have good competition
position in international market may extend beyond the 50 years limit
SC’s registered
business scope includes manufacturing and selling various aluminum alloy
materials, deep proceeded products, moulds and proceeding equipment; designing,
manufacturing, selling and installing various aluminum alloy doors &
windows, curtain wall and aluminum alloy decoration materials, etc.
SC is mainly
engaged in processing aluminum, manufacturing and selling aluminum foil and so
on.
Mr. Tang
Xiaojin is the legal representative and
chairman of SC at present.
SC is known
to have approx. 2,500 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 Zhuozhou. Our checks
reveal that SC owns the total premise about 250,000 square meters.
http://www.chinanca.com
The design is professional and the content is well organized. At present the
web site is both in Chinese and English versions.
E-mail: ncasales@chinanca.com wang@chinanca.com
Honors of SC:
In 2002, the Star Enterprise in Hebei Province in 2001
In 2002, the top 100 enterprises in Hebei Province
In 2004, the top 100 enterprises in Hebei Province
In 2003 by British moody company, the evaluation center issued moody
authentication and the renewal of ISO9001 quality certification
In 2005, 'Top 10 Chinese aluminum companies' top
In 2007, the Star Enterprise in Hebei Province
In 2008, leading Enterprise of non-ferrous metal smelting and rolling in
Hebei Province
In 2009, Quality benefit advanced enterprise in Hebei Province
In 2009, passed the ISO9001, 2008 quality management system certification,
ISO14001, 2004 environmental management system certification, GB/T28001:2001
Occupational Health and Safety Management System Certification
Etc.
Changes of its
registered information:
|
Date of change |
Item |
Before the change |
After the change |
|
2008 |
Legal representative |
Zhang Shoulian |
Xu Huizhong |
|
2009 |
Legal representative |
Xu Huizhong |
Jiao Jian |
|
Unknown |
Registered capital |
CNY 344,800,000 |
Present amount |
|
|
Shareholders |
Riseup Dragon Limited (Hong Kong) 51%; Aluminum
Corporation of China (CHINALCO)
18.89%; CITIC Development Co., Ltd. 16.31%; Hebei Metallurgy Group Corp.
13.80% |
Riseup Dragon Limited (Hong Kong) 72.80%;
Aluminum Corporation of China
(CHINALCO) 15.72%; Hebei State-Owned Assets Hold & Operation Co.,
Ltd. 11.48% |
|
2011 |
Shareholders |
Riseup Dragon Limited (Hong Kong) 72.80%; Aluminum Corporation of
China (CHINALCO) 15.72%; Hebei
State-Owned Assets Hold & Operation Co., Ltd. 11.48% |
Present ones |
|
Unknown |
Legal representative |
Jiao Jian |
Present one |
MAIN SHAREHOLDERS:
Name %
of Shareholding
Aluminco Holdings Limited (Cayman Islands) 72.80
Aluminum Corporation of China (CHINALCO) 15.72
Hebei State-Owned Assets Hold & Operation Co., Ltd. 11.48
Aluminum Corporation of China (CHINALCO)
==================================
Aluminum Corporation of China (CHINALCO), an
investment management and holding company authorized by the state, is a
backbone state-owned enterprise under direct administration of the central
government. It is the world’s second largest alumina producer and the third
largest primary aluminum producer. With CHINALCO being the holding company,
Aluminum Corporation of China Limited (CHALCO) is listed on the Hong Kong, New
York and Shanghai stock exchanges. CHALCO is rated BBB+ by Standard &
Poor’s for three years.
Web: http://www.chalco.com.cn/
E-mail: webmaster@chalco.com.cn
Tel:(86) 10-6397-1767
Legal representative: Xiong Weiping
Registration No.: 100000000035025
Registered capital: CNY 15,431,800,000
Hebei State-Owned Assets Hold & Operation Co., Ltd.
======================================
Web: http://www.hebgk.cn/
Address: No. 106 Huai’an East Road,
Shijiazhuang, Hebei Province
Tel: 0311-86047605
Fax: 0311-86694855
l
Legal representative and chairman:
Mr. Tang Xiaojin is currently responsible for the overall management of
SC.
Working Experience(s):
At present Working
in SC as legal representative and chairman
Other officials Title
Li Guoliang Vice
Chairman
Wang Jinghai
Vice Chairman
Yan Jin Director
Wang Ji Director
Li Qing
Director
Cheng Jie Director
SC is mainly
engaged in processing aluminum, manufacturing and selling aluminum foil and so
on.
SC’s products
mainly include: sheet and strip, heavy gauge foil, light gauge foil, hydrophilic
fin stock, PS plate, Aluminum profile, etc.
SC’s brands
include: “YinHua”, “Huabei”, etc.
SC sources its
materials 90% from domestic market, and 10% from the overseas market, mainly
Japan. SC sells 80% of its products in domestic market and 20% to Japan, South
Korea, European countries and Southeast Asia countries, etc.
The buying terms of SC include Check, T/T, L/C and Credit of 30-90 days.
The payment terms of SC include T/T, Check, L/C and Credit of 30-90 days.
*Major Suppliers:
==============
Japan Kobelco Co., Ltd.
Tianjin Machine Tool Electric Apparatus General Factory
Qinghai Aluminum Co., Ltd.
Sanmenxia Tianyuan Aluminum Industry Group
Co., Ltd.
Shanxi Guanlu Co., Ltd.
*Major Customers:
==============
Gree Electric Appliances Inc. of Zhuhai
Guangdong Kelong Electrical Co., Ltd.
Zhuozhou Taoyuan Aluminum Foil Factory
According to SC’s website:
Zhuoshen Non-Ferrous Metals Plant & Equipment Co., Ltd.
Zhuozhou
Yinfa Transportation Co., Ltd. (in Chinese Pinyin)
Zhuozhou
North China Aluminum Yinda Industry Company (in Chinese Pinyin)
Etc.
SC is also known to have agencies in Shenzhen, Wenzhou, Nanhai, Qingdao,
Shanghai, Chengdu, Hangzhou, following are 3 of them:
1. Shenzhen Bowei Trading Co., Ltd. (in
Chinese Pinyin)
Tel：86-0755-83175738
Fax：86-0755-83174728
Address： Room 405, Boshite Mansion, Aoshida Road,
Shangmeilin Industrial Zone, Shenzhen
2. Wenzhou Longwan Artificial Package Material
Corp. (in Chinese Pinyin)
Tel：86-0577-86358767
Fax：86-0577-86355668
Address： No. 26, Second Industrial Zone, Zhuangyuan
Town, Longwan District, Wenzhou, Zhejiang, PRC
3. Nanhai Huangqi Xinxing Industrial Trade
Co., Ltd. (in Chinese Pinyin)
Tel: 86-0757-5967275 07575909594 0757-5931341
Fax: 86-0757-5934359
Address: No. 301, Suit 9, Yihe New Village,
Huangqi Town, Nanhai Guangdong, PRC
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.
Industrial & Commercial Bank of China Zhuozhou Branch
AC#：0409020009221000291
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
As of Dec. 31,
2009 |
|
152,870 |
|
|
Bills receivable |
117,520 |
|
Inventory |
339,690 |
|
Accounts
receivable |
98,510 |
|
Advances to
suppliers |
124,330 |
|
Other
receivables |
11,770 |
|
Other current assets |
4,870 |
|
|
------------------ |
|
Current assets |
849,560 |
|
Fixed assets net
value |
424,740 |
|
Projects under
construction |
259,780 |
|
Long term
investment |
0 |
|
Intangible
assets |
7,470 |
|
Other assets |
6,230 |
|
|
------------------ |
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Total assets |
1,547,780 |
|
|
============= |
|
Short loans |
205,000 |
|
Bills payable |
0 |
|
Accounts payable |
80,920 |
|
Advances from
clients |
293,930 |
|
Interests
payable |
1,830 |
|
Salaries and
welfare payable |
19,230 |
|
Taxes payable |
-5,740 |
|
Other accounts
payable |
10,400 |
|
Non-current
liabilities due with in one year |
50,000 |
|
Other current
liabilities |
6,090 |
|
|
------------------ |
|
661,660 |
|
|
Long-term loans |
299,000 |
|
Other long-term
liabilities |
25,110 |
|
|
------------------ |
|
985,770 |
|
|
Equities |
562,010 |
|
|
|
|
Total
liabilities & equities |
1,547,780 |
|
|
============= |
Income Statement
Unit: CNY’000
Note: SC’s management declined to release the
latest financial information.
Important Ratios
=============
|
|
As
of Dec. 31, 2009 |
|
*Current ratio |
1.28 |
|
*Quick ratio |
0.77 |
|
*Liabilities
to assets |
0.64 |
|
*Net profit
margin (%) |
0.66 |
|
*Return on
total assets (%) |
0.62 |
|
*Inventory
/Turnover ×365 |
85 days |
|
*Accounts
receivable/Turnover ×365 |
25 days |
|
*Turnover/Total
assets |
0.95 |
|
* Cost of goods
sold/Turnover |
0.90 |
PROFITABILITY:
AVERAGE
l
The turnover 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 goods sold is average, comparing with
its turnover.
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 accounts receivable of SC appears average.
l
The inventory of SC appears fairly large.
l
The short term loan of SC appears average.
l
SC’s turnover is in a fair level in 2009, 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 Stable.
SC is well-known in its industry with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
conditions. Taking into consideration of SC’s background and development
history, credit up to moderate amount appears acceptable.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.30 |
|
|
1 |
Rs.82.88 |
|
Euro |
1 |
Rs.70.80 |
INFORMATION DETAILS
|
Report
Prepared by : |
PRL |
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.