|
Report Date : |
12.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
SHIJIAZHUANG IRON & STEEL CO., LTD. |
|
|
|
|
Registered Office : |
No. 363,
Heping East Road, Shijiazhuang City, Hebei Province 050031 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.06.2012 |
|
|
|
|
Date of Incorporation : |
22.05.1997 |
|
|
|
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Com. Reg. No.: |
130000400001942 |
|
|
|
|
Legal Form : |
Chinese-Foreign Equity Joint Venture
Enterprise |
|
|
|
|
Line of Business : |
manufacturing and selling pig iron, steel billet and steels |
|
|
|
|
No. of Employees : |
4500 |
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 : |
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 – 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 |
|
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 |
shijiazhuang iron &
steel co., ltd.
no. 363, heping east road
shijiazhuang city, hebei PROVINCE 050031 PR CHINA
TEL: 86 (0) 311-86912178/86912065
FAX: 86 (0) 311-86912011/86913909
Date of Registration may 22, 1997
REGISTRATION NO. : 130000400001942
LEGAL FORM : Chinese-foreign equity joint venture
enterprise
CHIEF EXECUTIVE : wang liping (LEGAL
REPRESENTATIVE)
REGISTERED CAPITAL :
CNY 2,000,000,000
staff : 4,500
BUSINESS CATEGORY :
manufacturing
REVENUE :
CNY 5,132,460,000 (JAN. 1, 2012 TO
JUN. 30, 2012)
EQUITIES :
CNY 2,524,630,000 (AS OF JUN. 30, 2012)
WEBSITE : www.csggs.com
E-MAIL :
lsy@csggs.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : steady
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.22 = USD 1
Adopted
abbreviations (as follows)
SC - Subject Company
(the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
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
SC was
established as a limited liabilities company of PRC on May 22, 1997. However,
SC changed to present legal form, and was registered as a Chinese-foreign
equity joint venture enterprise of PRC with State Administration for Industry
& Commerce (SAIC) under registration No.: 130000400001942 in November 2005.
SC’s Organization Code Certificate No.:
10436578-4

SC’s registered capital: CNY 2,000,000,000
SC’s paid-in capital: CNY 2,000,000,000
Registration Change Record:
|
Date |
Change
of Contents |
Before
the change |
After
the change |
|
2005-11 |
Legal Form |
Limited Liabilities Company |
Chinese-foreign
equity joint venture enterprise |
|
-- |
Registration
No. |
130000100170 |
130000400001942 |
|
Registered
Capital |
CNY 1,328,061,700 |
CNY 2,000,000,000 |
|
|
Shareholder
(s) (% of Shareholding) |
Hong
Kong CITIC Pacific (China) Investment Ltd. 50% Suzhou
Trust & Investment Co., Ltd. 30% Hebei
Province State-owned Assets Supervision and Administration Commission 20% |
Hebei
State-Owned Assets Hold & Operation Co., Ltd. 20% Hebei
Zhongfu Investment Co., Ltd. 15% Suzhou
Trust Co., Ltd. 15% China
Horizon Investments Limited (HK) 50% |
|
|
2010 |
Legal Representative |
Li Songxing |
Wang Liping |
|
2011 |
Shareholder (s) (% of Shareholding) |
Hebei State-Owned Assets Hold &
Operation Co., Ltd. 20% Hebei Zhongfu Investment Co., Ltd. 15% Suzhou Trust Co., Ltd. 15% China Horizon Investments Limited (HK) 50% |
Hebei State-Owned Assets Hold &
Operation Co., Ltd. 20% Hebei Iron & Steel Group Co., Ltd. 55% Hebei Iron & Steel International
Holding Co., Limited (Hong Kong) 25% |
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Hebei State-Owned Assets Hold &
Operation Co., Ltd. |
20 |
|
Hebei Iron & Steel Group Co., Ltd. |
55 |
|
Hebei Iron & Steel International
Holding Co., Limited (Hong Kong) |
25 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman
and General Manager |
Wang Liping |
|
Vice Chairman |
Fan Baoshu |
|
Deputy General Manager |
Huang Yongjian |
|
Liu Shihong |
SC has passed ISO9001: 2008, ISO/TS16949 Quality System Certification,
GB/T24001-2004-ISO14001-2004 Environmental Management System Certification, and
GB/T28001-2001 Occupation Health Safety Management System Certification.
Name
%
of Shareholding
Hebei State-Owned Assets Hold &
Operation Co., Ltd. 20
Hebei Iron & Steel Group Co., Ltd. 55
Hebei Iron & Steel International Holding
Co., Limited (Hong Kong) 25
Hebei State-Owned
Assets Hold & Operation Co., Ltd.
============================================
Registration No.: 130000000012458
Date of Registration: July 20, 2004
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY 2,000,000,000
Legal Representative: Qiu Jianwu
Address: No. 106, Huai’an East Road,
Shijiazhuang, Hebei Province
Tel: 86 (0) 311-86047605
Fax: 86 (0) 311-86694855
Web: www.hebgk.cn
Hebei Iron &
Steel Group Co., Ltd.
==============================
Registration No.: 130000000020407
Date of Registration: June 24, 2008
Legal Form: Sole State-owned Enterprise
Registered Capital: CNY CNY 20,000,000,000
Legal Representative: Wang Yifang
Address: No. 40, Yuhua West Road,
Shijiazhuang, Hebei Province
Tel: 86 (0) 311-66778886
Web: www.hebgtjt.com
Hebei Iron &
Steel International Holding Co., Limited (Hong Kong)
=======================================================
Company File No.: 1560426
Date of Registration: February 10, 2011
Legal Form: Private
Status: Live
Wang Liping Legal Representative, Chairman, and General Manager
------------------------------------------------------------------------------------------------------

Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as legal representative, chairman, and general manager
Fan Baoshu Vice Chairman
------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At
present, working in SC as vice chairman
Huang Yongjian, Deputy General
Manager
-------------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
Liu Shihong, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as deputy general manager
SC’s registered business scope includes manufacturing,
selling, importing and exporting pig iron, blast furnace slag, steel, steel
materials, steel byproducts, steel slag & products; import & export
business and domestic sales of iron ore; importing, exporting, wholesaling, and
retailing raw materials for metallurgic industry; renting and transferring
houses and equipment; import & export business, technology services, and
technology transfer for metallurgic technology; importing and exporting
metallurgic parts; manufacturing and selling oxygen, nitrogen, argon, and
utility gas; production technology consultation and services.
SC is mainly
engaged in manufacturing and selling pig iron, steel billet and steels.
SC’s products
mainly include: carbon structural steel bars, low alloy steel deformed bars,
alloy structural steel bars, spring steel, carbon structural steel bars, and
low alloy high strength steel.
SC sources its materials 100% from domestic
market, mainly Hebei. SC sells 70% of its products in domestic market, mainly
Jiangsu, etc., and 30% to overseas market, mainly USA, Europe and Southeast
Asian countries.
The
buying terms of SC include T/T and Credit of 30-60 days. The payment terms of
SC include T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Jiangyin Xingcheng Special Steel Co., Ltd.
Nanjing Automobile (Group) Corporation
Staff & Office:
--------------------------
SC is
known to have approx. 4,500 staff
at present.
SC
owns an area as its operating office and factory, but the detailed information
is unknown.

Branch:
======
u
Shijiazhuang Iron & Steel Co., Ltd. No.2
Steel Rolling Factory
Registration
No.: 130000500001010
Date
of Registration: August 26, 1994
Principal:
Xue Song
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.
Basic Bank:
Industrial and
Commercial Bank of China Shijiazhuang Branch
AC#: 0402022419300143509
Balance Sheet
|
Unit: CNY’000 |
As
of Jun. 30, 2012 |
|
612,120 |
|
|
Accounts
receivable |
615,470 |
|
Advances to suppliers |
0 |
|
Other receivable |
124,570 |
|
Inventory |
1,465,420 |
|
Non-current
assets within one year |
0 |
|
Other current
assets |
1,246,530 |
|
|
------------------ |
|
Current assets |
4,064,110 |
|
Fixed assets |
3,045,790 |
|
Construction in
progress |
276,740 |
|
Long-term equity
investment |
307,820 |
|
Long-term
prepaid expenses |
0 |
|
Deferred income
tax assets |
0 |
|
Other
non-current assets |
367,950 |
|
|
------------------ |
|
Total assets |
8,062,410 |
|
|
============= |
|
Short-term loans |
1,465,120 |
|
Notes payable |
0 |
|
Accounts payable |
1,034,210 |
|
Wages payable |
0 |
|
Advances from
clients |
574,610 |
|
Other payable |
821,230 |
|
Other current
liabilities |
970,170 |
|
|
------------------ |
|
Current
liabilities |
4,865,340 |
|
Non-current
liabilities |
672,440 |
|
|
------------------ |
|
Total
liabilities |
5,537,780 |
|
Equities |
2,524,630 |
|
|
------------------ |
|
Total
liabilities & equities |
8,062,410 |
|
|
============= |
Income Statement
|
Unit: CNY’000 |
Jan.
1, 2012 to Jun. 30, 2012 |
|
Revenue |
5,132,460 |
|
Cost of sales |
4,619,220 |
|
Sales expense |
120,100 |
|
Management expense |
113,540 |
|
Finance expense |
61,570 |
|
Profit before
tax |
209,110 |
|
Less: profit tax |
73,180 |
|
135,930 |
Important Ratios
=============
|
|
As
of Jun. 30, 2012 |
|
*Current ratio |
0.84 |
|
*Quick ratio |
0.53 |
|
*Liabilities
to assets |
0.69 |
|
*Net profit
margin (%) |
2.65 |
|
*Return on
total assets (%) |
1.69 |
|
*Inventory /
Revenue ×180 |
52 days |
|
*Accounts
receivable/ Revenue ×180 |
22 days |
|
*
Revenue/Total assets |
0.64 |
|
* Cost of
sales / Revenue |
0.90 |
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly 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:
FAIR
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 appears average.
l
The accounts receivable of SC appears average.
l
The short-term loans of SC appear fairly large.
l
SC’s revenue is in an
average 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 Stable.
SC is considered large-sized in its line with fairly stable
financial conditions. The fairly large amount of short-term loans may be a threat
to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
UK Pound |
1 |
Rs.81.09 |
|
Euro |
1 |
Rs.70.61 |
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.