MIRA INFORM REPORT
|
Report Date : |
14.05.2013 |
IDENTIFICATION DETAILS
|
Name : |
LIUZHOU IRON & STEEL CO., LTD. |
|
|
|
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Formerly Known as: |
Guangxi Liuzhou
Jincheng Co., Ltd. |
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Registered Office : |
No. 117, Beique Road, Liubei District, Liuzhou, Guangxi
Zhuang Autonomous Region, 545002 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
14.04.2000 |
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Com. Reg. No.: |
450200000000013 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is
engaged sintering, iron making, steel making; rolling, processing steel;
coking and selling related byproducts. |
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No. of Employees : |
9785 |
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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|
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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 – March 31st 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
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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 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 & address
LIUZHOU IRON & STEEL CO., LTD.
NO. 117, BEIQUE
ROAD, LIUBEI DISTRICT, LIUZHOU, Guangxi Zhuang Autonomous Region, 545002 PR
CHINA
TEL: 86 (0)
772-2593658/2595971 FAX: 86 (0)
772-2595998
EXECUTIVE SUMMARY
INCORPORATION DATE : APRIL 14, 2000
REGISTRATION NO. : 450200000000013
REGISTERED LEGAL
FORM : SHARES LIMITED COMPANY
STAFF
STRENGTH : 9,785
REGISTERED CAPITAL :
CNY 2,562,793,200
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 37,276,362,000
(AS OF DEC. 31, 2012)
EQUITIES :
CNY 5,396,261,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
6.1463 = 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
SC was registered as a shares limited company at local Administration for Industry & Commerce (AIC – The official body of issuing and renewing business license) on April 14, 2000.
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in China.. Natural person are allowed to
serve as promoters. The minimum registered capital
of a co. is CNY 5M. while that of the co. with foreign investment is CNY
5M. The total capital of a co. which propose to apply for publicly listed
must be no less than CNY 30M. The
board of directors must consist of five to nineteen directors. If the co. raises
capital by public offer, the promoters must not subscribe less than 35% of
the total shares. the promoters’ shares are restricted to transfer- within
one year of the offer. A
state-owned enterprise that is restructured into a shares limited co. must comply with the conditions & requirements
specified under the law & administrative rule.
SC’s registered
business scope includes sintering, iron making, steel making and selling
related byproducts; rolling, processing steel and selling related byproducts;
coking and selling related byproducts; exporting self-made products and related
technology; importing raw materials, machines, instrument and meter, components
and related technology required in manufacturing, research & development;
processing with imported materials, processing with imported samples,
assembling with imported parts, and compensation trade in agreement; Cargo handling, lighterage; machinery and equipment rental;
machinery processing and repairing; consignment of metal materials; technical
advisory services; rental housing facade; domestic advertising design,
production, publishing.
SC is mainly
engaged in sintering, iron making, steel making; rolling, processing steel;
coking and selling related byproducts.
Mr.
Shi Peirun has been legal representative and chairman of SC since 2010.
SC is known to have approx. 9,785 employees at present;
including
8,503 production staff, 49 marketing staff, 123 technical staff, 62 financial
staff and 1,048 administrative staff.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Liuzhou. Our checks reveal that SC owns the total premise but the gross area is
unspecified.
http://www.liusteel.com The
design is professional and the content is well organized. At present it is in
Chinese version.
Email: liscl@163.com
SC is a listed company in Shanghai Stock Exchange Market
with the code of 601003.
SC has passed ISO9002, GB/T28001:2001, GB/T14001-2004,
GB/T19022-2003, etc.
Changes of its
registered information:
|
Date of change |
Item |
Before the
change |
After the change |
|
2001-10 |
Company’s name |
Guangxi Liuzhou
Jincheng Co., Ltd. (in Chinese Pinyin |
Liuzhou Iron and
Steel Co., Ltd. |
|
2004 |
Legal representative |
Liang Jingli |
Wu
Chenggui |
|
2006 |
Legal representative |
Wu
Chenggui |
Liao Zhigang |
|
2007-2 |
Registered capital |
CNY 604,887,000 |
CNY 711,887,000 |
|
2007-05 |
Registered capital |
CNY 711,887,000 |
CNY 1,423,774,000 |
|
2008-05 |
Registered capital |
CNY 1,423,774,000 |
CNY 2,562,793,200 |
|
2010-2 |
Legal representative |
Liao Zhigang |
Shi Peirun |
|
Unknown |
Registration no. |
4500001001249 |
450200000000013 |
Tax Registration Certificate No.: 450205715187622
Organization Code: 71518762-2
See below for SC as executive party (defendant).
|
Executed Party |
Liuzhou Iron and Steel Co., Ltd. |
|
Court |
Liuzhou Liubei District People's Court |
|
Date
of Case |
May 16, 2011 |
|
Case Number |
(2011) 00154 |
|
Claim
Amount |
RMB 210,272.83 |
|
Case
Status |
Completed |
Remark: Due to the lack of information, we are unable to provide the cause of
action, judgment or other information.
MAIN SHAREHOLDERS:
(As of Dec. 31, 2012)
Name
%
of Shareholding
Guangxi Liuzhou Iron & Steel
(Group) Company 82.51
Account No. 2 of the National
Council for Social Security Fund 1.5
China Construction Bank - JP Morgan
China Advantage Securities
Investment Fund 0.42
Liuzhou Chemical Industry Group
Co., Ltd. 0.16
Zheng Cailing 0.09
Zheng Yugui 0.07
Xie Dongxin 0.06
Lin Chunying 0.05
Industrial and Commercial Bank
of China Co., Ltd.
- Huitianfu Shanghai Composite
Index Securities Investment Fund 0.05
Yan Jingdi 0.04
Other Shareholders 15.05
Guangxi Liuzhou Iron & Steel
(Group) Company
====================================
Registration no.: 450200000015278
Legal representative: Liang Jingli
Registered capital : CNY
2,219,610,000
Address: No. 117, Beique Road, Liuzhou, Guangxi 545002
Tel: 0772-2593658 0772-2590114
Legal
representative and chairman:
Mr. Shi Peirun , born in 1964 with MBA degree. He is currently responsible for the overall management of SC.
Working
Experience(s):
From 2010 to present Working in SC as chairman and legal representative.
General manager
and director:
Mr. Zhong Hai, senior engineer, born in 1957 with university education. He is currently responsible for the daily management of SC.
Working
Experience(s):
At present Working in SC as general manager and director.
Vice general
managers:
Ban Junchao
Shi Haining
Huang Yuanmin
Etc.
Directors:
Liang Jingli
Gan Guiping
Liang Tie
Etc.
Supervisors:
Li Ruiren
Liang Peifa
Li Jun
Etc.
SC is mainly
engaged in sintering, iron making, steel making; rolling, processing steel;
coking and selling related byproducts.
Main Products:
Steel & Iron Plates, Steel Billets, Coking Byproducts, Coke, etc.
SC sources its materials 90%
from domestic market, and 10% from overseas market. SC sells 99% of its
products in domestic market, and 1% 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 Supplier:
============
Guangxi Liuzhou Iron & Steel
(Group) Company
*Major Customers:
==============
·
Liuzhou
Pincheng Metal Materials Co., Ltd. (in Chinese pinyin)
·
Liuzhou
Zhengrong Trading Co., Ltd. (in Chinese pinyin)
·
Guangdong
Yesen Trade Development Co., Ltd. (in Chinese pinyin)
·
Liuzhou
Linhai Supplies Co., Ltd. (in Chinese pinyin)
Liuzhou
Xingjia Real Estate Development Co., Ltd.
======================================
Registration
no.: 450200000010612
Registered
capital: CNY 20,000,000
Legal
representative: Yao Zhiguang
Liuzhou Pincheng
Metal Materials Co., Ltd. (in Chinese pinyin)
==============================================
Registration
no.: 450200000010477
Registered
capital: CNY 530,000,000
Legal
representative: Li Pucheng
Liuzhou
Molten Steel Engineering Construction Supervision Co., Ltd. (Literal
translation)
================================================================
Registration
no.: 450200000008430
Registered
capital: CNY 1,000,000
Legal
representative: Xie Xiaoshen
Etc.
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.
SC’s management
declined to release its bank details.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
Cash & bank |
843,506 |
1,756,419 |
|
Trading
financial assets |
0 |
1,675 |
|
Notes receivable |
3,847,745 |
1,125,392 |
|
Inventory |
6,319,529 |
6,043,134 |
|
Accounts
receivable |
115,383 |
109,102 |
|
Advances to
supplies |
1,108,179 |
1,661,113 |
|
Other
receivables |
17,569 |
16,084 |
|
Other current
assets |
180,000 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
12,431,911 |
10,712,919 |
|
Fixed assets |
9,684,831 |
7,921,790 |
|
Projects under
construction |
392,809 |
485,654 |
|
Project
materials |
10,587 |
26,859 |
|
Long-term
investments |
0 |
0 |
|
Deferred
tax assets |
19,595 |
17,763 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
22,539,733 |
19,164,985 |
|
|
============= |
============= |
|
Short loans |
9,626,241 |
5,523,960 |
|
Notes payable |
1,035,522 |
360,000 |
|
Accounts payable |
1,886,649 |
1,431,473 |
|
Advances from
customers |
270,602 |
1,013,547 |
|
Accrued
payroll |
31,816 |
48,841 |
|
Taxes payable |
-10,617 |
-3,119 |
|
Interest payable |
101,440 |
97,749 |
|
Other Accounts
payable |
97,358 |
43,423 |
|
Long-term
liabilities due with in one year |
1,366,485 |
1,394,000 |
|
Other
current liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
14,405,496 |
9,909,874 |
|
Long term
liabilities |
2,737,976 |
3,986,342 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
17,143,472 |
13,896,216 |
|
Shareholders
equities |
5,396,261 |
5,268,769 |
|
|
------------------ |
------------------ |
|
Total
liabilities & equities |
22,539,733 |
19,164,985 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
Turnover |
37,276,362 |
42,390,997 |
|
Cost of goods sold |
35,542,056 |
40,219,477 |
|
Taxes and additional of main
operation |
56,872 |
92,282 |
|
Sales expense |
18,709 |
37,577 |
|
Management expense |
906,425 |
924,035 |
|
Finance expense |
695,008 |
689,219 |
|
Asset impairment loss |
12,552 |
615 |
|
Investment
income |
-602 |
-856 |
|
Non-operating
income |
92,997 |
21,183 |
|
Non-operating expense |
11,926 |
44,805 |
|
Operation Profit |
125,730 |
402,791 |
|
Less: profit tax |
3,142 |
40,530 |
|
Net profit |
122,588 |
362,261 |
Important Ratios
=============
|
|
as of Dec. 31,
2012 |
as of Dec. 31,
2011 |
|
*Current ratio |
0.86 |
1.08 |
|
*Quick ratio |
0.42 |
0.47 |
|
*Liabilities
to assets |
0.76 |
0.73 |
|
*Net profit
margin (%) |
0.33 |
0.85 |
|
*Return on
total assets (%) |
0.54 |
1.89 |
|
*Inventory
/Turnover ×365/180 |
62 days |
52 days |
|
*Accounts
receivable/Turnover ×365/180 |
1 day |
1 day |
|
*Turnover/Total
assets |
1.65 |
2.21 |
|
* Cost of
goods sold/Turnover |
0.95 |
0.95 |
PROFITABILITY:
AVERAGE
l
The turnover of SC appears good in both years.
l
SC’s net profit margin is average in both years.
l
SC’s return on total assets is average in both years.
l
SC’s cost of goods sold is fairly high,
comparing with its turnover in both years.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained
in a normal level in 2011 but fair in 2012.
l
SC’s quick ratio is maintained in a fair level in
both years.
l
The inventory of SC appears fairly large in both
years.
l
The accounts receivable of SC is maintained in an
average level in both years.
l
SC’s short-term loan appears large in both years.
l
SC’s turnover is in an average level, comparing
with the size of its total assets in both years.
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 considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory and short loans could be a threat to
SC’s financial condition. In view of SC’s favorable background, credit dealings
with SC in favorable terms can be considered.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.92 |
|
UK Pound |
1 |
Rs.84.44 |
|
Euro |
1 |
Rs.71.32 |
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.