MIRA INFORM REPORT
|
Report Date : |
16.03.2013 |
IDENTIFICATION DETAILS
|
Name : |
DAYE SPECIAL STEEL CO., LTD. |
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Registered Office : |
No. 316 Huangshi Avenue, Huangshi City Hubei Province
435001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
18.05.1993 |
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Com. Reg. No.: |
420000400004320 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Processing and manufacturing different sorts of steel. |
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No. of Employees : |
3,594 |
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 |
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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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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
DAYE SPECIAL STEEL CO., LTD.
NO. 316 HUANGSHI AVENUE, HUANGSHI CITY
HUBEI PROVINCE 435001 PR CHINA
TEL: 86 (0) 714-6297373
FAX: 86 (0) 714-6297280
EXECUTIVE SUMMARY
Date of Registration : may 18, 1993
REGISTRATION NO. : 420000400004320
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : cny 449,408,480
staff :
3,594
BUSINESS CATEGORY : processing &
manufacturing
REVENUE :
CNY 8,122,734,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 2,937,665,000 (AS OF DEC. 31, 2012)
WEBSITE : www.dayesteel.com.cn
E-MAIL :
dytg0708@163.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : good
EXCHANGE RATE :
CNY 6.23 = 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.: 420000400004320
on May 18, 1993.
SC’s Organization Code Certificate No.:
27175201-X
SC’s registered capital: CNY 449,408,480
SC’s paid-in capital: CNY 449,408,480
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 December 31, 2012) |
% of Shareholding |
|
Hubei Xin Yegang Co., Ltd. |
29.95 |
|
Citic Pacific (China) Investment Co., Ltd. |
28.17 |
|
Taikang Life Insurance Co.,
Ltd.-Toulian-Personal Insurance Liantou |
1.82 |
|
Dongfeng Motor Corporation |
1.78 |
|
National Social Insurance Fund-111
Combination |
0.89 |
|
China Construction Bank-Morgan Stanley
Huaxin Advantages Security Investment Fund |
0.61 |
|
Agricultural Bank of China-Xincheng
Sijihong Mixed Securities Investment Fund |
0.55 |
|
Hubei Zhengzhi Asset Management Co., Ltd. |
0.51 |
|
Li Feng |
0.46 |
|
Hubei Dingxing Mining Co., Ltd. |
0.45 |
|
Other Shareholders |
34.81 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman, and
General Manager |
Yu Yapeng |
|
Director |
Gao Guohua |
|
Qian Gang |
|
|
Ruan Xiaojiang |
|
|
Xie Wei |
|
|
Guo Wenliang |
|
|
Yu Yapeng |
|
|
Guo Peifeng |
RECENT DEVELOPMENT
SC is a listed company in Shenzhen Stock Exchange Market with the code
of 000708.
SC’s quality system has been approved by TV Quality Management System and
got ISO9001 standard 2000 Ed and QS9000 1998 Ed Certifications. It is the first
company in China who manufactures large-sized steel mooring chain and the third
who gets certifications from the United States ABS, Norway DNV, the United
Kingdom LR and other international well-known classification societies.
SHAREHOLDER CHART & BACKGROUND
Name (as of December 31, 2012) %
of Shareholding
Hubei Xin Yegang Co., Ltd. 29.95
Citic Pacific (China) Investment Co., Ltd. 28.17
Taikang Life Insurance Co.,
Ltd.-Toulian-Personal Insurance Liantou 1.82
Dongfeng Motor Corporation 1.78
National Social Insurance Fund-111
Combination 0.89
China Construction Bank-Morgan Stanley
Huaxin
Advantages Security Investment Fund 0.61
Agricultural Bank of China-Xincheng Sijihong
Mixed
Securities Investment Fund 0.55
Hubei Zhengzhi Asset Management Co., Ltd. 0.51
Li Feng 0.46
Hubei Dingxing Mining Co., Ltd. 0.45
Other Shareholders 34.81
n Hubei Xin Yegang
Co., Ltd.
----------------------------------------
Registration No.: 420000400002906
Date of Registration: October 3, 1985
Legal Form: Limited Liabilities Company
Registered Capital: CNY 339,830,000
Legal Representative: Liu Jie
n Dongfeng Motor
Corporation
-----------------------------------------
Dongfeng Motor Corporation (DFM) was first
established in 1969 and has commanded a leading position in the PRC automotive
industry ever since. After more than thirty years of construction, DFM has
formed several major production facilities, which are distributed in Shiyan
(mainly engaged in the production of medium duty and heavy duty commercial
vehicles, auto parts and components and vehicle manufacturing equipments),
Xiangfan (mainly engaged in the production of light duty commercial vehicles
and passenger vehicles), Wuhan (mainly engaged in the production of passenger
vehicles) and Guangzhou (mainly engaged in the production of passenger
vehicles). On September 28th, 2003, DFM moved its operating center from Shiyan
to Wuhan. Major businesses of the company include the manufacture of whole
serial commercial vehicles, passenger vehicles, auto parts and components, as
well as vehicle manufacturing equipment.
MANAGEMENT
Yu Yapeng , Legal
Representative, Chairman, and General Manager
-----------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 56
Ø Qualification: Junior
College
Ø Working experience
(s):
At present, working in SC as legal
representative, chairman, and general manager
Also as director of SC
Other Directors
---------------------
Gao Guohua
Qian Gang
Ruan Xiaojiang
Xie Wei
Guo Wenliang
Guo Peifeng
BUSINESS OPERATION
SC’s registered
business scope includes steel smelting, steel rolling, metal modifying,
pressing processing, and steel materials checking.
SC is mainly
engaged in processing and manufacturing different sorts of steel.
SC’s products
mainly include bearing steel, die steel, spring steel, and so on.
SC sources its materials 50% from domestic
market, mainly Jiangsu, Hubei, etc., and 50% from overseas market, mainly U.S.A.
and Europe. SC sells 80% of its products in domestic market, and 20% to
overseas market, mainly Southeast Asian 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.
It is said that SC has established business relationship in 30 countries
of Europe, America, Asia and Pacific area.
*Major Customers:
==============
ULDRY STEEL SA
Dongfeng Motor Commercial Vehicle Company
Wafangdian Bearing Co., Ltd.
TRUCK AND GO, S.A
NORMET INDUSTRIES LIMITED
*Major Suppliers:
==============
Huangshi Xinxing
Pipe Industry Co., Ltd.
Jiangyin Xingcheng
Special Steel Co., Ltd.
HuBei CPSS New
Chemical Energy Resources Co.,Ltd.,
Staff & Office:
--------------------------
SC is known
to have approx. 3,594 staff at present.
SC owns an area as
its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
SC
is not known to have any subsidiary at present.
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:
China
Construction Bank Huangshi Branch Yegang Sub-branch
AC#:
42001608808050003080
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
418,766 |
72,731 |
|
|
Held for trading financial assets |
0 |
0 |
|
Notes receivable |
274,324 |
282,379 |
|
Accounts
receivable |
277,606 |
286,605 |
|
Advances to
suppliers |
84,877 |
43,493 |
|
Interest receivable |
0 |
0 |
|
Other receivable |
21,431 |
2,178 |
|
Inventory |
1,009,131 |
874,091 |
|
Other current
assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
2,086,135 |
1,561,477 |
|
Long-term equity
investment |
0 |
0 |
|
Fixed assets |
2,233,269 |
2,495,751 |
|
Construction in
progress |
97,789 |
140,842 |
|
Project
materials |
0 |
0 |
|
Intangible
assets |
26,755 |
23,432 |
|
Goodwill |
0 |
0 |
|
Long-term
prepaid expenses |
0 |
0 |
|
Deferred income
tax assets |
25,693 |
12,563 |
|
Other
non-current assets |
231,750 |
20,113 |
|
|
------------------ |
------------------ |
|
Total assets |
4,701,391 |
4,254,178 |
|
|
============= |
============= |
|
Short-term loans |
5,000 |
130,000 |
|
Held for trading
financial liabilities |
0 |
0 |
|
Notes payable |
478,807 |
85,181 |
|
Accounts payable |
761,895 |
826,866 |
|
Advances from
clients |
175,405 |
96,330 |
|
Payroll payable |
18,905 |
12,475 |
|
Tax payable |
-1,186 |
-13,679 |
|
Interest payable |
1,783 |
0 |
|
Dividend payable |
2,220 |
3,132 |
|
Other payable |
129,857 |
51,900 |
|
Current
liabilities due within one year |
0 |
0 |
|
Other current
liabilities |
182,904 |
7,000 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
1,755,590 |
1,199,205 |
|
Non-current liabilities |
46,594 |
117,308 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
1,802,184 |
1,316,513 |
|
Equities |
2,899,207 |
2,937,665 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
4,701,391 |
4,254,178 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
As
of Dec. 31, 2012 |
|
Revenue |
9,261,828 |
8,122,734 |
|
Cost of sales |
8,224,781 |
7,445,543 |
|
Taxes and surcharges |
9,707 |
19,030 |
|
Sales expense |
75,462 |
79,919 |
|
Management expense |
378,896 |
355,638 |
|
Finance expense |
30,084 |
6,609 |
|
Non-operating
income |
104,122 |
65,043 |
|
Non-operating expense |
5,139 |
6,769 |
|
Profit before
tax |
654,239 |
261,829 |
|
Less: profit tax |
69,307 |
43,608 |
|
Profits |
584,932 |
218,221 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.19 |
1.30 |
|
*Quick ratio |
0.61 |
0.57 |
|
*Liabilities
to assets |
0.38 |
0.31 |
|
*Net profit
margin (%) |
6.32 |
2.69 |
|
*Return on
total assets (%) |
12.44 |
5.13 |
|
*Inventory /
Revenue ×365 |
40 days |
40 days |
|
*Accounts
receivable/ Revenue ×365 |
11 days |
13 days |
|
*
Revenue/Total assets |
1.97 |
1.91 |
|
* Cost of sales
/ Revenue |
0.89 |
0.92 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l The revenue of SC
appears good in its line in both years.
l SC’s net profit
margin is fairly good in 2011, average in 2012.
l SC’s return on
total assets is fairly good in 2011, average in 2012.
l
SC’s cost of sales 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 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: FAIRLY
GOOD
l
The debt ratio of SC is low.
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.16 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.70.50 |
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.