MIRA
INFORM REPORT
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Report Date : |
19.08.2014 |
IDENTIFICATION DETAILS
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Name : |
CHINA
ALUMINUM INTERNATIONAL ENGINEERING CORPORATION LIMITED |
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Registered Office : |
Building C, |
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Country : |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
16.12.2003 |
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Com. Reg. No.: |
100000000038541 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes dispatching labors; industry and special planning;
domestic engineering survey, design, consultation, supervision and general
contracting; selling equipment and materials;
contracting overseas non-ferrous metal industry project and domestic
international bidding project; undertaking installing engineering &
international bidding engineering related with exported finished equipment;
international trade; equipment manufacturing; energy-saving and environmental
protection, new materials industry technology development and product
production and sales; property management. |
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No of Employees : |
12,000 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
No Complaints |
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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 01, 2014
|
Country Name |
Previous Rating (31.03.2014) |
Current Rating (01.06.2014) |
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China |
A2 |
A2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderate Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderate High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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, growth of the private sector,
development of stock markets and a modern banking system, 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 considered important to "economic security,"
explicitly looking to foster globally competitive industries. After keeping its
currency tightly linked to the US dollar for years, in July 2005 China 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 and expanded the daily trading
band within which the RMB is permitted to fluctuate. 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 2013 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 consumption; (b) facilitating higher-wage job
opportunities for the aspiring middle class, including rural migrants and
increasing numbers of college graduates; (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. Several factors are converging to slow China's growth, including
debt overhang from its credit-fueled stimulus program, industrial overcapacity,
inefficient allocation of capital by state-owned banks, and the slow recovery
of China's trading partners. The government's 12th Five-Year Plan, adopted in
March 2011 and reiterated at the Communist Party's "Third Plenum"
meeting in November 2013, emphasizes continued economic reforms and the need to
increase domestic consumption in order to make the economy less dependent in
the future on fixed investments, exports, and heavy industry. However, China
has made only marginal progress toward these rebalancing goals. The new
government of President XI Jinping has signaled a greater willingness to
undertake reforms that focus on China's long-term economic health, including
giving the market a more decisive role in allocating resources.
|
Source
: CIA |
company name & address
CHINA ALUMINUM INTERNATIONAL
ENGINEERING CORPORATION LIMITED
BUILDING C, NO.
99 XINGSHIKOU ROAD, HAIDIAN DISTRICT
BEIJING 100093
PR CHINA
TEL: 86 (0)
10-82406888/82406999
FAX: 86 (0)
10-82406666
EXECUTIVE SUMMARY
Date of Registration : december 16, 2003
REGISTRATION NO. : 100000000038541
LEGAL FORM : Shares limited company
CHIEF EXECUTIVE :
zhang chengzhong (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 2,663,160,000
staff :
12,000
BUSINESS CATEGORY :
Engineering Services
Revenue :
CNY 18,144,752,000 (AS OF dec. 31, 2013)
total EQUITy :
CNY 6,541,246,000 (AS OF dec. 31, 2013)
WEBSITE : www.chalieco.com.cn
E-MAIL :
marketing@chalieco.com.cn
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.15 = 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.: 100000000038541 on December 16, 2003.
SC’s Organization Code Certificate No.:
71093232-0
SC’s registered capital: CNY 2,663,160,000
SC’s paid-in capital: CNY 2,663,160,000
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) |
% of Shareholding |
|
Luoyang Engineering Research Institute for Nonferrous Metals
Processing |
3.32 |
|
Aluminum Corporation of China Limited |
83.05 |
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H Shares Issued In Hong Kong |
13.63 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Zhang Chengzhong |
|
General Manager |
He Zhihui |
|
Director |
Jiang Jianxiang |
|
Ma Xiaoling |
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|
Sun Chuanrao |
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|
Wang Jun |
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|
Wu Yuewu |
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|
Zhang Hongguang |
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|
Zhang Zhankui |
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Supervisor |
Dong Hai |
|
Long Chaosheng |
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|
Ou Xiaowu |
RECENT
DEVELOPMENT
SC is a listed company in Hong Kong Stock Exchange Market with the code
of 2068.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Luoyang Engineering Research Institute for Nonferrous Metals Processing 3.32
Aluminum Corporation of China Limited 83.05
H Shares Issued In Hong Kong 13.63
Luoyang
Engineering Research Institute for Nonferrous Metals Processing
=========================================================
Date of Registration: July 1, 1964
Registration No.: 410300011018387
Legal Form: Shares Limited
Company
Chief Executive: Zhou Baiquan周百泉
Registered Capital: CNY 102,080,000
Aluminum Corporation
of China Limited
=================================
Date of Registration: February 21, 2001
Registration No.: 100000000035025
Legal Form: State-owned
Chief Executive: Xiong Weiping熊维平
Registered Capital: CNY 15,431,801,000
Web: www.chalco.com.cn
MANAGEMENT
Zhang Chengzhong, Legal Representative and Chairman
-------------------------------------------------------------------------------------
Gender: M
Age: 53
Qualification: University
Working experience (s):
From 2005 to present, working in SC as legal representative and
chairman, also working in Aluminum Corporation of China Limited as deputy
general manager
He Zhihui, General
Manager
-------------------------------------------------
Gender: M
Age: 51
Qualification: University
Working experience (s):
From 2010 to present, working in SC as general manager
Director
-----------
Jiang Jianxiang
Ma Xiaoling
Sun Chuanrao
Wang Jun
Wu Yuewu
Zhang Hongguang
Zhang Zhankui
Supervisor
--------------
Dong Hai
Long Chaosheng
Ou Xiaowu
BUSINESS
OPERATION
SC’s registered business scope includes dispatching labors; industry and
special planning; domestic engineering survey, design, consultation,
supervision and general contracting; selling
equipment and materials; contracting overseas non-ferrous metal industry
project and domestic international bidding project; undertaking installing
engineering & international bidding engineering related with exported
finished equipment; international trade; equipment manufacturing; energy-saving
and environmental protection, new materials industry technology development and
product production and sales; property management.
SC is mainly engaged in mapping project, surveying and geotechnical
construction services.
SC sources its materials 90% from domestic market, and 10% from overseas market. SC sells 60% of its products in domestic market, and 40% to overseas market.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The payment
terms of SC include Check, T/T, L/C and Credit of 30-60 days.
Staff &
Office:
--------------------------
SC is known to have approx. 12,000
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
SC is known to
have following subsidiaries and branches at present,
·
Shenyang Aluminum Mangnesium Designe &Research
Institute Company Limited
·
Guiyang Aluminum Mangnesium Designe &Research
Institute Company Limited
·
Changsha Non-ferrous Metallurgy
Designe&Research Institute Company Limited
·
China Non-ferrous Metals Processing Technonlogy
Company Limited
·
China Non-ferrous Metals Industry Changsha
Investigationg & Designe Research Institute
·
China Non-ferrous Metals Industry Sixth Metallurgical
Construction Company Limited
·
China Non-ferrous Metals Industry Twelfth
Metallurgical Construction Company Limited
·
Shandong Aluminum Engineering Corporation Limited
·
CHALCO Great Wall Construction Company Limited
·
Tinjin Jinlv Construction Company Limited
·
China Aluminum International Engineering
Corporation Limited Changkan Branch
·
China Aluminum International Engineering
Corporation Limited Changsha Branch
·
China Aluminum International Engineering
Corporation Limited Shenyang Branch
·
China Aluminum International Engineering
Corporation Limited Guiyang Branch
·
China Aluminum International Engineering
Corporation Limited Luoyang Branch
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:
Bank of China
AC#: 00000318156024286
FINANCIALS
CONSOLIDATED
BALANCE SHEET
As
at 31 December
2013
2012
CNY’000
CNY’000
============================================================
Assets
Non-current assets
Property, plant and equipment 1,682,332 1,577,011
Land use rights 834,237 798,030
Investment properties 28,825 30,007
Trade and notes receivables 1,223,760 1,215,820
Prepayments and other
receivables 774,672 192,543
Intangible assets 221,576 220,729
Investment in associates 21,801 47,760
Available-for-sale financial
assets 259,042 191,329
Deferred income tax assets 300,887 312,632
Other non-current assets 15,987 4,845
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Total non-current assets 5,363,119 4,590,706
===========================================================
Current assets
Available-for-sale financial
assets 11,000 1,000
Inventories 835,206 712,624
Trade and notes receivables 7,739,918 5,198,928
Prepayments and other
receivables 1,493,779 1,603,072
Amounts due from customers
for contract work 5,989,329 4,776,992
Current income tax
prepayments 36,690 4,103
Financial assets at fair
value through profit or loss – 413
Restricted cash 239,678 275,805
Time deposits 41,480 198,305
Cash and cash equivalents 6,456,158 2,759,653
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Total current assets 22,843,238 15,530,895
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Total assets 28,206,357 20,121,601
===========================================================
Equity and liabilities
Equity
Share capital 2,663,160 2,663,160
Reserves 3,708,696 2,410,540
-----------------------------------------------------------------------------------------------------
Consolidated equity
attributable to
Equity owners of the Company 6,371,856 5,073,700
Non-controlling interests 169,390 124,102
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Total equity 6,541,246
5,197,802
-----------------------------------------------------------------------------------------------------
Liabilities
Non-current liabilities
Deferred income 97,066 79,022
Long-term borrowings 290,152 190,349
Retirement and other
supplemental benefit
Obligations 1,120,579 1,323,545
Deferred income tax
liabilities 11,635 21,851
Trade and other payables 239,444 343,841
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Total non-current liabilities 1,758,876 1,958,608
-----------------------------------------------------------------------------------------------------
Current liabilities
Trade and other payables 10,909,538 10,292,577
Dividends payable 57,240 53,080
Financial liabilities at fair
value through profit or loss – 1,499
Amounts due to customers for
contract work 726,086 211,443
Short-term borrowings 7,595,740 2,193,491
Current income tax
liabilities 501,010 94,097
Retirement and other
supplemental benefit
Obligations 116,621 119,004
-----------------------------------------------------------------------------------------------------
Total current liabilities 19,906,235
12,965,191
-----------------------------------------------------------------------------------------------------
Total liabilities 21,665,111
14,923,799
-----------------------------------------------------------------------------------------------------
Total equity and liabilities 28,206,357
20,121,601
-----------------------------------------------------------------------------------------------------
Net current assets 2,937,003
2,565,704
-----------------------------------------------------------------------------------------------------
Total assets less current
liabilities 8,300,122 7,156,410
CONSOLIDATED
INCOME STATEMENT
2013 2012
CNY’000 CNY’000
Revenue 18,144,752 16,465,972
Cost of sales (16,067,549) (13,759,408)
--------------------------------------------------------------------------------------------------------
Gross profit 2,077,203 2,706,564
Selling and marketing expenses (402,208) (430,738)
Administrative expenses (1,020,382) (914,526)
Other income 38,010 77,546
Other (losses)/gains – net (496) 27,991
Gains on disposal of an associate 1,711,734 –
--------------------------------------------------------------------------------------------------------
Operating profit 2,403,861 1,466,837
Finance income 132,290 94,622
Finance expenses (251,238) (163,396)
--------------------------------------------------------------------------------------------------------
Finance expenses –
net
(118,948) (68,774)
Share of losses of associates (2,071) (2,258)
--------------------------------------------------------------------------------------------------------
Profit before
income tax 2,282,842 1,395,805
Income tax expense (581,083) (282,068)
--------------------------------------------------------------------------------------------------------
Profit for the
year 1,701,759 1,113,737
Important Ratios
=============
|
|
As
of Dec. 31, 2013 |
As
of Dec. 31, 2012 |
|
*Current ratio |
1.15 |
1.20 |
|
*Quick ratio |
1.11 |
1.14 |
|
*Liabilities to assets |
0.77 |
0.74 |
|
*Net profit margin (%) |
9.38 |
6.76 |
|
*Return on total assets (%) |
6.03 |
5.54 |
|
*Inventory / Revenue ×365 |
17 days |
16 days |
|
*Revenue/Total assets |
0.64 |
0.82 |
|
*Cost of sales / Revenue |
0.89 |
0.84 |
FINANCIAL
COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in both years.
SC’s net profit margin is fairly good in both years.
SC’s return on total assets is fairly good in both years.
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 fairly good level.
The inventory of SC appears average in both years.
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: AVERAGE
The debt ratio of SC is average.
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.61.05 |
|
|
1 |
Rs.101.84 |
|
Euro |
1 |
Rs.81.55 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
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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 |
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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.