MIRA INFORM REPORT
|
Report Date : |
02.10.2013 |
IDENTIFICATION DETAILS
|
Name : |
DAYE SPECIAL STEEL CO., LTD. |
|
|
|
|
Registered Office : |
No. 316 Huangshi Avenue, Huangshi City Hubei Province 435001 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2012 |
|
|
|
|
Date of Incorporation : |
18.05.1993 |
|
|
|
|
Com. Reg. No.: |
420000400004320 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject is engaged in processing and manufacturing different sorts of
steel. |
|
|
|
|
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 |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
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 |
|
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 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
DAYE SPECIAL STEEL CO., LTD.
NO. 316 HUANGSHI AVENUE, HUANGSHI CITY HUBEI PROVINCE 435001 PR CHINA
TEL: 86 (0) 714-6297373/6297295
FAX: 86 (0) 714-6297280
***Note: SC’s
complete name should be the above stated one.
EXECUTIVE SUMMARY
Date of Registration : may 18, 1993
REGISTRATION NO. : 420000400004320
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF EXECUTIVE :
yu yapeng (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : cny 449,408,480
staff :
3,594
BUSINESS CATEGORY : PROCESSING & MANUFACTURING
REVENUE :
CNY 3,757,186,000 (JAN. 1 2013 TO JUN. 30, 2013)
EQUITIES :
CNY 3,048,574,000 (AS OF JUN. 30, 2013)
WEBSITE : http://www.lttc.com.cn/www.dayesteel.com.cnhttp://www.hayao.com/
E-MAIL :
dytg0708@163.commailto:lttc@lttc.com.cnmailto:master@hayao.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : good
EXCHANGE RATE :
CNY 6.12 = 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 June 30, 2013) |
% of Shareholding |
|
Hubei Xin Yegang Co., Ltd. |
29.95 |
|
Citic Pacific (China) Investment Co., Ltd. |
28.17 |
|
Dongfeng Motor Corporation |
1.78 |
|
Taikang Life Insurance Co., Ltd.-Toulian-Personal Insurance Liantou |
1.71 |
|
National Social Insurance Fund-111 Combination |
0.74 |
|
Li Feng |
0.63 |
|
Hubei Zhengzhi Asset Management Co., Ltd. |
0.51 |
|
Lin Daojing |
0.48 |
|
Hubei Dingxing Mining Co., Ltd. |
0.45 |
|
Yingda Taihe Property Insurance Co., Ltd.- Self-Owned Capital |
0.41 |
|
Other Shareholders |
35.17 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Yu Yapeng |
|
General Manager |
Ruan Xiaojiang |
|
Deputy General Manager |
Jiang Qiao |
|
Director |
Gao Guohua |
|
Qian Gang |
|
|
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 June
30, 2013) %
of Shareholding
Hubei Xin Yegang Co., Ltd. 29.95
Citic Pacific (China) Investment Co., Ltd. 28.17
Dongfeng Motor Corporation 1.78
Taikang Life Insurance Co., Ltd.-Toulian-Personal Insurance Liantou 1.71
National Social Insurance Fund-111 Combination 0.74
Li Feng 0.63
Hubei Zhengzhi Asset Management Co., Ltd. 0.51
Lin Daojing 0.48
Hubei Dingxing Mining Co., Ltd. 0.45
Yingda Taihe Property Insurance Co., Ltd.- Self-Owned Capital 0.41
Other Shareholders 35.17
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
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
and Chairman
--------------------------------------------------------------------------
Gender: M
Age: 58
Qualification: Junior College
Working experience (s):
At present, working in SC as legal representative and chairman
Also as director of SC
Ruan Xiaojiang, General Manager
---------------------------------------------------------
Gender: M
Age: 45
Qualification: University
Working experience (s):
From 2012 to present, working in SC as general manager
Jiang Qiao, Deputy General
Manager
---------------------------------------------------------
Gender: M
Age: 42
Qualification: University
Working experience (s):
From 2010 to present, working in SC as deputy general manager
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 S.A
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,
2012 |
As of Jun. 30,
2013 |
|
72,731 |
122,533 |
|
|
Held for trading
financial assets |
0 |
0 |
|
Notes receivable |
282,379 |
195,154 |
|
Accounts receivable |
286,605 |
341,339 |
|
Advances to suppliers |
43,493 |
49,302 |
|
Interest receivable |
0 |
0 |
|
Other receivable |
2,178 |
24,806 |
|
Inventory |
874,091 |
895,801 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
1,561,477 |
1,628,935 |
|
Long-term equity investment |
0 |
0 |
|
Fixed assets |
2,495,751 |
2,496,895 |
|
Construction in progress |
140,842 |
60,552 |
|
Project materials |
0 |
0 |
|
Intangible assets |
23,432 |
23,025 |
|
Goodwill |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
12,563 |
11,789 |
|
Other non-current assets |
20,113 |
4,624 |
|
|
------------------ |
------------------ |
|
Total assets |
4,254,178 |
4,225,820 |
|
|
============= |
============= |
|
Short-term loans |
130,000 |
150,000 |
|
Held for trading financial liabilities |
0 |
0 |
|
Notes payable |
85,181 |
80,396 |
|
Accounts payable |
826,866 |
686,169 |
|
Advances from clients |
96,330 |
84,452 |
|
Payroll payable |
12,475 |
13,500 |
|
Tax payable |
-13,679 |
-24,331 |
|
Interest payable |
0 |
0 |
|
Dividend payable |
3,132 |
3,132 |
|
Other payable |
51,900 |
65,779 |
|
Current liabilities due within one year |
7,000 |
52,000 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,199,205 |
1,111,097 |
|
Non-current liabilities |
117,308 |
66,149 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,316,513 |
1,177,246 |
|
Equities |
2,937,665 |
3,048,574 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
4,254,178 |
4,225,820 |
|
|
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2012 |
Jan. 1 2013 to
Jun. 30, 2013 |
|
Revenue |
8,122,734 |
3,757,186 |
|
Cost of sales |
7,445,543 |
3,413,289 |
|
Taxes and surcharges |
19,030 |
10,296 |
|
Sales expense |
79,919 |
44,593 |
|
Management expense |
355,638 |
146,303 |
|
Finance expense |
6,609 |
17,587 |
|
Non-operating income |
65,043 |
4,568 |
|
Non-operating expense |
6,769 |
0 |
|
Profit before tax |
261,829 |
130,482 |
|
Less: profit tax |
43,608 |
19,573 |
|
Profits |
218,221 |
110,909 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Jun. 30,
2013 |
|
*Current ratio |
1.30 |
1.47 |
|
*Quick ratio |
0.57 |
0.66 |
|
*Liabilities to assets |
0.31 |
0.28 |
|
*Net profit margin (%) |
2.69 |
2.95 |
|
*Return on total assets (%) |
5.13 |
2.62 |
|
*Inventory / Revenue ×365/180 |
40 days |
43 days |
|
*Accounts receivable/ Revenue ×365/180 |
13 days |
17 days |
|
* Revenue/Total assets |
1.91 |
0.89 |
|
* Cost of sales / Revenue |
0.92 |
0.91 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears good in its line.
SC’s net profit margin is average.
SC’s return on total assets is average.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC is maintained in an average level.
The accounts receivable of SC is maintained in an average level.
SC’s short-term loans are in an average level.
SC’s revenue is in an average level, comparing with the size of its
total assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is low.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Stable.
CONCLUSIONS
SC is considered large-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.35 |
|
|
1 |
Rs.101.20 |
|
Euro |
1 |
Rs.84.54 |
INFORMATION DETAILS
|
Report Prepared
by : |
SDA |
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.