MIRA
INFORM REPORT
|
Report Date : |
29.12.2014 |
IDENTIFICATION DETAILS
|
Name : |
Beijing Sifang
Automation Co., ltd. |
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Registered Office : |
No. 9
Shangdi, |
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Country : |
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Financials (as on) : |
30.09.2014 |
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Date of Incorporation : |
08.04.1994 |
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Com. Reg. No.: |
110000001696921 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing and Selling Transmission & Distribution of Control Equipment, Power Electronic
Devices, Industrial Automatic Control System |
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No. of Employees : |
3,641 |
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 : |
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 – September 30, 2014
|
Country Name |
Previous Rating (30.06.2014) |
Current Rating (30.09.2014) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
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, 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 and address
Beijing Sifang Automation Co., ltd.
No. 9 Shangdi 4th
Street
haidian district, Beijing
100085 PR CHINA
TEL: 86 (0)
10-62961515
FAX: 86 (0)
10-62981004
EXECUTIVE SUMMARY
Date of Registration : APRIL 8, 1994
REGISTRATION NO. : 110000001696921
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 406,595,000
staff : 3,641
BUSINESS CATEGORY :
manufacturing & trading
REVENUE : CNY
2,030,979,000 (Consolidated, Jan. 1, 2014 to Sep. 30, 2014)
EQUITIES : CNY
3,277,418,000 (Consolidated, as of Sep. 30, 2014)
WEBSITE : www.sifang-electric.com
E-MAIL : ir@sf-auto.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : fairly STEADY
GENERAL REPUTATION : average
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
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.: 110000001696921
on April 8, 1994.
SC’s Organization Code Certificate No.:
62590467-5
SC’s registered capital: CNY 406,595,000
SC’s paid-in capital: CNY 406,595,000
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) (As of September
30, 2014) |
% of Shareholding |
|
Sifang Electric (Group) Co., Ltd. |
50.1 |
|
Beijing
Furui Tianxiang Investment & Management Co., Ltd. |
6.55 |
|
Beijing
Zhongdian Hengji Energy Technology Co., Ltd. |
6.06 |
|
Beijing
Diangu Investment Co., Ltd. |
3.04 |
|
PICC Health
Insurance Company Limited-Universal Insurance Products |
1.64 |
|
Yang Qixun |
1.11 |
|
Zhongrong
Life Insurance Co., Ltd.-Universal Insurance Products |
0.78 |
|
Donghai
Fund-Industrial and Commercial Bank of China-Donghai Fund-Haijie-Xinlong No.3
Asset Management Plan |
0.49 |
|
Jiujia
Securities Investment Fund |
0.43 |
|
Beijing International Trust Co., Ltd. |
0.42 |
|
Other
Shareholders |
29.38 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Zhang Weifeng |
|
General
Manager |
Zhang Tao |
|
Director |
Xu Jianliang |
|
Zhang Tao |
|
|
Wang Deli |
|
|
Wang Xuzhao |
|
|
Gao Xiuhuan |
|
|
Independent
Director |
Sun Weiguo |
|
Zeng Rong |
|
|
Huang Ping |
|
|
Supervisor |
Peng Yaqin |
|
Gao Feng |
|
|
Wang Liding |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange Market with the code
of 601126.
SHAREHOLDER CHART &
BACKGROUND
Name %
of Shareholding
(As of September 30, 2014)
---------------------------------
Sifang Electric (Group) Co., Ltd. 50.1
Beijing Furui Tianxiang Investment &
Management Co., Ltd. 6.55
Beijing Zhongdian Hengji Energy Technology
Co., Ltd. 6.06
Beijing Diangu Investment Co., Ltd. 3.04
PICC Health Insurance Company
Limited-Universal Insurance Products 1.64
Yang Qixun 1.11
Zhongrong Life Insurance Co., Ltd.-Universal
Insurance Products 0.78
Donghai Fund-Industrial and Commercial Bank
of China-Donghai Fund-Haijie-Xinlong No.3 Asset Management Plan 0.49
Jiujia Securities Investment Fund 0.43
Beijing International Trust Co., Ltd. 0.42
Other Shareholders 29.38
Sifang Electric (Group) Co., Ltd.
---------------------------------------
Registration No.: 110000000313277
Legal Form: Shares Limited Company
Registered Capital: CNY 70,988,000
Legal Representative: Yang Qixun
Beijing Zhongdian Hengji Energy Technology
Co., Ltd.
-------------------------------------------
Registration No.: 110000005188083
Legal Form: One-person Limited Liabilities
Company
Registered Capital: CNY 32,380,000
Legal Representative: Huang Jian
Beijing Diangu Investment Co., Ltd.
-------------------------------------------
Registration No.: 110000003718492
Legal Form: Limited Liabilities Company
Registered Capital: CNY 44,830,000
Legal Representative: Wang Deli
Beijing International Trust Co., Ltd.
-------------------------------------------
Registration No.: 110000000032773
Date of Registration: October 5, 1984
Legal Form: Chinese-foreign equity joint
venture enterprise
Registered Capital: CNY 1,400,000,000
Legal Representative: Li Minji
Web: www.bjitic.com
MANAGEMENT
Zhang Weifeng, Legal Representative and Chairman
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 49
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative and
general manager
Zhang Tao, General Manager
-----------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as general manager
Director
-----------
Xu Jianliang
Zhang Tao
Wang Deli
Wang Xuzhao
Gao Xiuhuan
Independent Director
---------------------------
Sun Weiguo
Zeng Rong
Huang Ping
Supervisor
--------------
Peng Yaqin
Gao Feng
Wang Liding
BUSINESS OPERATION
SC’s registered business scope includes manufacturing and selling
transmission & distribution & control equipment, power electronic
devices, industrial automatic control system, steam turbine bypass device,
compound excitation device, wind power machinery, mining, quarrying equipment,
electrical machinery & special equipment, special equipment for the
electronics industry, environmental pollution prevention and control of special
equipment, public security equipment and equipment, traffic safety and control
equipment, railway special dispatching communication equipment, station
communication equipment, generators and generator sets, optical fiber, cable,
cable accessories, insulation products, transformers, vehicle special lighting
& electrical signal device, optical transmission equipment, carrier
communication transmission equipment, digital transmission multiplexing
equipment & equipment in solution, digital transmission equipment, data
exchange solution equipment, communication network & system, modem,
computer network equipment, electrical instrumentation, supply instrument,
environmental monitoring instrumentation dedicated, geological exploration and
seismic special instruments, electronic measuring instruments, and power plant
thermal meter; technology development, technology promotion, technology
transfer, technical consultation, technical services, and technical training;
computer system services; data processing; software service; software
consulting; total construction contract, professional contracting,
subcontracting services; selling computer, software & auxiliary equipment,
communication equipment, electronic products, devices and components;
engineering & technology research and experimental development; importing
and exporting commodities and technology.
SC is mainly
engaged in manufacturing and selling transmission & distribution &
control equipment, power electronic devices, industrial automatic control
system, etc.
SC’s products
mainly include: substation automation system, dispatching automation system,
automatic controlling system for power plant, etc.
SC sources its materials 80% from domestic market and 20% from the
overseas market. SC sells 60% of its products in domestic market and 40% to overseas market, mainly U.S.A., etc.
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.
Staff & Office:
--------------------------
SC is known
to have approx. 3,641 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 the
following subsidiaries at present,
Beijing
Sifang Jibao Engineering Technology Co., Ltd.
Nanjing
Sifang Epower Automation Co., Ltd.
Baoding
Sifang Sanyi Electric Co., Ltd.
Beijing
ABB Sifang Power System Co., Ltd.
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 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.
BANKING
The bank information
of SC is not filed in local SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Sep. 30, 2014 |
|
682,244 |
308,172 |
|
|
Notes receivable |
93,141 |
31,614 |
|
Accounts receivable |
2,147,763 |
2,445,865 |
|
Advances to suppliers |
74,995 |
111,406 |
|
Interest receivable |
7,380 |
9,229 |
|
Dividend receivable |
0 |
33,565 |
|
Other receivable |
58,157 |
71,419 |
|
Inventory |
711,769 |
852,213 |
|
Other current assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current assets |
3,775,449 |
3,863,483 |
|
Long-term equity investment |
105,643 |
70,898 |
|
Fixed assets |
287,606 |
286,002 |
|
Construction in progress |
38,194 |
123,249 |
|
Project materials |
0 |
0 |
|
Fixed asset depreciation |
0 |
0 |
|
Intangible assets |
258,163 |
271,046 |
|
Development expenditure |
36,808 |
23,609 |
|
Goodwill |
129,073 |
129,073 |
|
Long-term prepaid expenses |
2,439 |
2,118 |
|
Deferred income tax assets |
70,927 |
91,616 |
|
Other non-current assets |
5,060 |
27,817 |
|
|
------------------ |
------------------ |
|
Total assets |
4,709,362 |
4,888,911 |
|
|
============= |
============= |
|
Short-term loans |
50,000 |
151,000 |
|
Notes payable |
53,011 |
78,938 |
|
Accounts payable |
777,623 |
789,086 |
|
Advances from clients |
274,516 |
207,076 |
|
Payroll payable |
114,782 |
93,271 |
|
Tax payable |
72,460 |
77,693 |
|
Interest payable |
78 |
621 |
|
Other payable |
40,272 |
12,993 |
|
Non-current liabilities within one year |
33,050 |
40,633 |
|
Other current liabilities |
17,715 |
17,715 |
|
|
------------------ |
------------------ |
|
Current liabilities |
1,433,507 |
1,469,026 |
|
Non-current liabilities |
78,591 |
142,467 |
|
|
------------------ |
------------------ |
|
Total liabilities |
1,512,098 |
1,611,493 |
|
Equities |
3,197,264 |
3,277,418 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
4,709,362 |
4,888,911 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
Jan. 1, 2014 to Sep. 30, 2014 |
|
Revenue |
3,052,550 |
2,030,979 |
|
Cost of
sales |
1,816,538 |
1,174,693 |
|
Taxes and surcharges |
30,575 |
19,499 |
|
Sales expense |
455,383 |
355,258 |
|
Management expense |
458,044 |
354,992 |
|
Finance expense |
3,948 |
-2,018 |
|
Investment income |
53,875 |
13,204 |
|
Non-operating income |
121,994 |
76,105 |
|
Non-operating expense |
7,296 |
1,536 |
|
Profit before tax |
427,204 |
193,108 |
|
Less: profit tax |
56,701 |
23,753 |
|
Profits |
370,503 |
169,355 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Sep. 30,
2014 |
|
*Current ratio |
2.63 |
2.63 |
|
*Quick ratio |
2.14 |
2.05 |
|
*Liabilities to assets |
0.32 |
0.33 |
|
*Net profit margin (%) |
12.14 |
8.34 |
|
*Return on total assets (%) |
7.87 |
3.46 |
|
*Inventory / Revenue ×365/270 |
86 days |
114 days |
|
*Accounts receivable / Revenue ×365/270 |
257 days |
326 days |
|
*Revenue / Total assets |
0.65 |
0.42 |
|
*Cost of sales / Revenue |
0.60 |
0.58 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
l
SC’s return on total assets is fairly good.
l
SC’s cost of sales is average, comparing with its
revenue.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC appears large.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in a fair level, comparing with the
size of its total assets.
LEVERAGE: AVERAGE
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. Taking into consideration of SC’s general performance, reputation
as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.63.64 |
|
|
1 |
Rs.98.98 |
|
Euro |
1 |
Rs.77.74 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
NIT |
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.