MIRA
INFORM REPORT
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Report No. : |
315446 |
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Report Date : |
01.04.2015 |
IDENTIFICATION DETAILS
|
Name : |
DONGFANG ELECTRIC
CORPORATION LIMITED |
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Registered Office : |
No.
18 Xixin Road, West of High-Tech Zone, Chengdu Sichuan Province 611731 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
28.12.1993 |
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Com. Reg. No.: |
510109000059366 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is mainly engaged in researching, developing, manufacturing and selling power generation equipment. |
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No. of Employees : |
21,379 |
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 : |
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 – December 31, 2014
|
Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
|
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, 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
DONGFANG ELECTRIC CORPORATION LIMITED
no. 18 xixin road,
west of high-tech zone, chengdu
SICHUAN PROVINCE
611731 PR CHINA
TEL: 86 (0)
28-87583666
FAX: 86 (0)
28-87583551
EXECUTIVE SUMMARY
Date of Registration : dECember 28, 1993
REGISTRATION NO. : 510109000059366
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : CNY 2,003,860,000
staff : 21,379
BUSINESS CATEGORY : r & d & manufacturing & trading
REVENUE : CNY 39,036,165,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY
20,469,266,000 (AS OF DEC. 31, 2014)
WEBSITE : www.dec-ltd.cn
E-MAIL : dsb@dongfang.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND : Steady
GENERAL REPUTATION : GOOD
EXCHANGE RATE : CNY 6.21 = 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.: 510109000059366
on December 28, 1993.
SC’s Organization Code Certificate No.:
20511548-8
SC’s registered capital: CNY 2,003,860,000
SC’s paid-in capital: CNY 2,003,860,000
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-12 |
Company Name |
Dongfang
Electrical Machinery Company Limited |
Dongfang
Electric Corporation Limited |
|
2009 |
Registered Capital |
CNY 882,000,000 |
CNY 1,001,930,000 |
|
2010 |
Registered Capital |
CNY 1,001,930,000 |
CNY 2,003,860,000 |
|
-- |
Registration No. |
5106001800189 |
510109000059366 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of Dec. 31,
2014) |
% of Shareholding |
|
Dongfang Electric Corporation |
50 |
|
HKSCC NOMINEES LIMITED |
16.87 |
|
China Construction Bank-Yinhua Core Values
Of Preferred Equity Securities Investment Fund |
0.52 |
|
China Huarong Asset Management Co., Ltd. |
0.38 |
|
Bank of China-Castrol Services Value-Added
Industries Securities Investment Fund |
0.32 |
|
Bank of Communications-Hua’an Strategy
Preferred Securities Investment Fund |
0.29 |
|
Hou Zhijiang |
0.22 |
|
Bank of China- Castrol CSI 300
Exchange-Traded Index Securities Investment Funds |
0.18 |
|
Wei Lihua |
0.17 |
|
Industrial and Commercial Bank of China-
Hua Tai Borui CSI 300 Exchange-Traded Index Securities Investment Funds |
0.15 |
|
Other
Shareholders |
30.9 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Si Zefu |
|
CEO |
Wen Shugang |
|
Vice CEO |
Han Zhiqiao |
|
Gao Feng |
|
|
Chen Huan |
RECENT DEVELOPMENT
SC is a listed company both in Hong Kong Exchanges with code of 1072.HK
and Shanghai Stock Exchange Market with the code of 600875.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of Dec. 31, 2014)
----------------------------------
Dongfang Electric Corporation 50
HKSCC NOMINEES LIMITED 16.87
China Construction Bank-Yinhua Core Values Of
Preferred Equity
Securities Investment Fund 0.52
China Huarong Asset Management Co., Ltd. 0.38
Bank of China-Castrol services value-added
industries Securities
Investment Fund 0.32
Bank of Communications-Hua’an Strategy
Preferred Securities
Investment Fund 0.29
Hou Zhijiang 0.22
Bank of China- Castrol CSI 300
Exchange-Traded Index Securities
Investment Funds 0.18
Wei Lihua 0.17
Industrial and Commercial Bank of China- Hua
Tai Borui CSI 300
Exchange-Traded Index Securities Investment
Funds 0.15
Other Shareholders 30.9
Dongfang Electric Corporation
==========================
Dongfang Electric Corporation (DEC) is
established in 1984. Now it is one of the largest enterprises in China engaging
in the manufactures of generating equipments and the contracts of generating
station projects, at the same time it is also confirmed by Central Party to be
one of the substantial state-owned enterprises relating to national security
and economic vital. By the end of 2007, the total asset of DEC has reached
48,000 million Yuan. It has been listed among the 225 largest international
contractors. Nowadays Dongfang Electric Corporation is capable of producing the
large thermal power generating units of 300MW, 600MW and 1000MW, and water
turbine generator sets of 400MW, 550MW and 700MW in batch quantity. At the same
time it can also produce the nuclear power units of 1000MW and wind power
generating set of 2.5MW. And other products of the DEC include gas turbine,
photovoltaic power generation units, tidal power generation units, seawater
desalination equipment and pressure vessels etc. For many years the production
of the DEC has been No.
Date of Registration: November 6, 1984
Registration No.: 100000000012275
Registered Capital: CNY 4,791,675,000
Address: No. 18, Xixin Street, Gaoxin West
District, Chengdu, Sichuan Province
Tel: 86 028- 87898111
Email: dongfang@dongfang.com
HKSCC NOMINEES LIMITED
===========================
CR No.: 0309729
Date of Registration: May 14, 1991
Company
Status: Private
MANAGEMENT
Si Zefu,
Legal Representative and Chairman
---------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 57
Ø Qualification: Master
Degree
Ø Working experience
(s):
From 1995 to 1998, worked in Dongfang Electric
Factory as vice factory director, worked in SC as vice general manager
From 1998 to 1999, worked in Deyang
City of Sichuan Province as vice mayor
From 1999 to 2003, worked in SC as
general manager and vice chairman
From 2003 to 2008,
worked in Dongfang Electric Corporation as general manager and vice chairman
From 2007 to present, working in SC as
legal representative and chairman
Also working in Dongfang Electric
Corporation as legal representative and chairman
Wen Shugang, CEO
-------------------------------------
Ø Gender: M
Ø Age: 52
Ø Qualification: Doctor
Degree
Ø Working experience
(s):
From 2007 to present, working in SC as
CEO
Vice
CEO
------------
Han Zhiqiao
Gao Feng
Chen Huan
BUSINESS OPERATION
SC’s registered business scope includes manufacturing,
selling, researching and developing universal equipments, electric apparatus
and equipments, nuclear power generation equipments, wind power generation
equipments, renewable energy power generation equipments and spare parts;
researching, developing, manufacturing and selling industrial control and
automation equipments; researching, developing, manufacturing and selling
environmental protection equipment (desulfurization, denitrification,
wastewater, solid waste), energy-saving equipment, petro-chemical containers;
researching, developing, manufacturing and selling instruments and meters,
general machinery; manufacturing and selling industrial gas; power plant
design, power station equipments technology development, sales and service of
the equipments; general contractor and subcontractors of overseas power
generation equipments, mechanical and electrical equipments, complete sets of
projects, and domestic international bidding projects; export of the equipments
and materials, and dispatching workers,
which are needed for the above mentioned overseas projects; import and
export trade; business services; professional and technical services;
scientific and technological exchanges and services. (with permit if needed)
SC
is mainly engaged in researching, developing, manufacturing and selling power
generation equipment.
SC’s products
mainly include: gas power equipment, thermal power equipment, hydro power
equipment, nuclear power equipment, wind power equipment, etc.
SC sources its
materials 80% from domestic market, and 20% from overseas market. SC sells 70%
of its products in domestic market, and 30% 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 T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Special Metals
Welding Products Co.
Bgr Energy Systems
Limited
Staff & Office:
--------------------------
SC is known
to have approx. 21,379 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
invest in the following companies:
Dongfang Electric Corporation Dongfang Gas Turbine Co., Ltd.
Dongfang Electric Corporation Dongfang Electrical Machinery Co., Ltd.
Dongfang Electric Corporation Dongfang Boiler Co., Ltd.
Dongfang (Guangzhou) Heavy Machinery Co., Ltd.
Dongfang Electric (Wuhan) Nuclear Equipment Company Limited
Etc.
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 SAIC.
FINANCIALS
Consolidated Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
12,131,648 |
17,822,818 |
|
|
Accounts receivable |
17,032,484 |
17,698,467 |
|
Notes receivable |
2,784,861 |
2,626,993 |
|
Advances to suppliers |
4,716,519 |
4,210,529 |
|
Interest receivable |
101,620 |
153,964 |
|
Other receivable |
352,960 |
282,414 |
|
Inventory |
27,301,843 |
29,640,990 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
26,648 |
56,550 |
|
|
------------------ |
------------------ |
|
Current assets |
64,448,583 |
72,492,725 |
|
Long-term investments |
784,130 |
974,911 |
|
Real estate investment |
72,798 |
74,062 |
|
Fixed assets |
9,243,611 |
8,537,914 |
|
Construction in progress |
685,790 |
818,329 |
|
Project materials |
113 |
113 |
|
Intangible assets |
1,013,340 |
988,753 |
|
Goodwill |
0 |
0 |
|
Long-term deferred expense |
509 |
475 |
|
Deferred income tax assets |
1,280,999 |
1,331,043 |
|
Other non-current assets |
306,830 |
11,844 |
|
|
------------------ |
------------------ |
|
Total assets |
77,836,703 |
85,230,169 |
|
|
============= |
============= |
|
Short-term loans |
3,453,072 |
2,534,000 |
|
Notes payable |
4,865,094 |
5,275,895 |
|
Accounts payable |
14,224,699 |
15,893,241 |
|
Payroll payable |
358,333 |
339,885 |
|
Taxes payable |
53,907 |
-172,897 |
|
Advances from clients |
32,284,212 |
33,384,928 |
|
Dividends payable |
3,390 |
3,143 |
|
Other payable |
1,805,193 |
1,738,315 |
|
Other current liabilities |
166,264 |
3,398,722 |
|
|
------------------ |
------------------ |
|
Current liabilities |
57,214,164 |
62,395,232 |
|
Non-current liabilities |
2,029,148 |
2,365,671 |
|
|
------------------ |
------------------ |
|
Total liabilities |
59,243,312 |
64,760,903 |
|
Equities |
18,593,391 |
20,469,266 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
77,836,703 |
85,230,169 |
|
|
============= |
============= |
Consolidated Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
42,390,797 |
39,036,165 |
|
Cost of
sales |
33,742,867 |
32,495,806 |
|
Taxes and
surcharges |
302,468 |
237,862 |
|
Sales expense |
960,628 |
891,929 |
|
Management expense |
3,728,794 |
3,609,660 |
|
Finance expense |
-133,572 |
-181,277 |
|
Asset impairment loss |
1,261,411 |
901,224 |
|
Investment income |
226,558 |
212,026 |
|
Non-operating income |
206,484 |
204,916 |
|
Non-operating expense |
195,924 |
28,173 |
|
Profit before tax |
2,787,492 |
1,502,342 |
|
Less: profit tax |
388,089 |
181,725 |
|
Profits |
2,399,403 |
1,320,617 |
Important Ratios
=============
|
|
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
1.13 |
1.16 |
|
*Quick ratio |
0.65 |
0.69 |
|
*Liabilities to assets |
0.76 |
0.76 |
|
*Net profit margin (%) |
5.66 |
3.38 |
|
*Return on total assets (%) |
3.08 |
1.55 |
|
*Inventory / Revenue ×365 |
236 days |
278 days |
|
*Accounts receivable / Revenue ×365 |
147 days |
166 days |
|
*Revenue / Total assets |
0.54 |
0.46 |
|
*Cost of sales / Revenue |
0.80 |
0.83 |
FINANCIAL COMMENTS
PROFITABILITY:
AVERAGE
l The revenue of SC
appears fairly good in its line.
l SC’s net profit
margin is average.
l SC’s return on
total assets is average.
l
SC’s cost of goods sold is average, comparing with
its revenue.
LIQUIDITY: FAIR
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 appears large.
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: FAIRLY
GOOD
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.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.62.59 |
|
|
1 |
Rs.92.46 |
|
Euro |
1 |
Rs.67.51 |
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.