MIRA
INFORM REPORT
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Report No. : |
334640 |
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Report Date : |
01.08.2015 |
IDENTIFICATION DETAILS
|
Name : |
daye special steel
co., ltd. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2014 |
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Date of Incorporation : |
18.05.1993 |
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Com. Reg. No.: |
420000400004320 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject includes steel smelting, steel rolling, metal modifying,
pressing processing, and steel materials checking. |
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No. of Employees : |
3,765 |
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 |
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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 |
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
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)
714-6297280/6297225
EXECUTIVE SUMMARY
Date of Registration : may 18, 1993
REGISTRATION NO. : 420000400004320
LEGAL FORM : SHARES LIMITED COMPANY
REGISTERED CAPITAL : cny 449,408,480
staff : 3,765
BUSINESS CATEGORY : PROCESSING & MANUFACTURING
REVENUE : CNY
7,352,544,000 (AS OF DEC. 31, 2014)
EQUITIES : CNY
3,317,502,000 (AS OF DEC. 31, 2014)
WEBSITE : www.dayesteel.com.cn
E-MAIL : dytg0708@163.com
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND :
fairly STEADY
GENERAL REPUTATION : fairly good
EXCHANGE RATE : CNY 6.17 = 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 December 31, 2014) |
% of Shareholding |
|
Hubei Xin
Yegang Co., Ltd. |
29.95 |
|
Citic
Pacific (China) Investment Co., Ltd. |
28.18 |
|
Li Feng |
0.78 |
|
Bank of China-Huatai
Borui Quantify the enhanced index Securities Investment Fund |
0.63 |
|
Hubei
Zhengzhi Asset Management Co., Ltd. |
0.51 |
|
Chen Guohua |
0.44 |
|
Dai Wenwei |
0.44 |
|
National
Social Insurance Fund-402 Combination |
0.29 |
|
Jin Weiming |
0.27 |
|
Jiangsu
Shuangliang Technology Co., Ltd. |
0.22 |
|
Other
Shareholders |
38.29 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative, Chairman and Director |
Yu Yapeng |
|
General
Manager |
Ruan Xiaojiang |
|
Deputy General
Manager |
Liu Wenxue |
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 December
31, 2014)
% of Shareholding
Hubei Xin Yegang Co., Ltd. 29.95
Citic Pacific (China) Investment Co., Ltd. 28.18
Li Feng 0.78
Bank of China-Huatai Borui Quantify the
enhanced index Securities
Investment Fund 0.63
Hubei Zhengzhi Asset Management Co., Ltd. 0.51
Chen Guohua 0.44
Dai Wenwei 0.44
National Social Insurance Fund-402
Combination 0.29
Jin Weiming 0.27
Jiangsu Shuangliang Technology Co., Ltd. 0.22
Other Shareholders 38.29
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
Citic Pacific (China) Investment Co., Ltd.
=================================
Registration No.: 310000400249643
Date of Registration: October 27, 2000
Registered Capital: USD 100,000,000
Legal Representative: Zhang Jijing
MANAGEMENT
Yu Yapeng, Legal Representative, Chairman and Director
--------------------------------------------------------------------------------------
Ø
Gender: M
Ø
Age: 60
Ø
Qualification:
Junior College
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and director
Ruan Xiaojiang, General Manager
---------------------------------------------------------
Ø
Gender: M
Ø
Age: 47
Ø
Qualification:
University
Ø
Working
experience (s):
From 2012 to present, working in SC as general manager
Liu Wenxue, Deputy General Manager
--------------------------------------------------------------
Ø
Gender: M
Ø
Age: 43
Ø
Qualification:
University
Ø
Working
experience (s):
From 2010 to present, working in SC as deputy general
manager
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:
==============
Wafangdian Bearing Co., Ltd.
Magnum Forge Machine Works P Ltd.
Precision Forging Pvt Ltd.
Mannan Shahid Forgings Ltd.
National Automotive Components Pvt Ltd.
*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. 3,765 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 Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
72,731 |
82,211 |
530,586 |
|
|
Held for trading
financial assets |
0 |
0 |
0 |
|
Notes receivable |
282,379 |
392,865 |
500,374 |
|
Accounts receivable |
286,605 |
363,947 |
359,942 |
|
Advances to suppliers |
43,493 |
88,546 |
11,293 |
|
Interest receivable |
0 |
0 |
0 |
|
Other receivable |
2,178 |
1,838 |
43,722 |
|
Inventory |
874,091 |
936,395 |
1,003,023 |
|
Other current assets |
0 |
63,876 |
7,848 |
|
|
------------------ |
------------------ |
------------------ |
|
Current assets |
1,561,477 |
1,929,678 |
2,456,788 |
|
Long-term equity investment |
0 |
0 |
0 |
|
Fixed assets |
2,495,751 |
2,446,437 |
2,287,325 |
|
Construction in progress |
140,842 |
73,225 |
142,575 |
|
Project materials |
0 |
0 |
0 |
|
Intangible assets |
23,432 |
22,616 |
21,800 |
|
Goodwill |
0 |
0 |
0 |
|
Long-term prepaid expenses |
0 |
0 |
0 |
|
Deferred income tax assets |
12,563 |
22,015 |
29,447 |
|
Other non-current assets |
20,113 |
7,764 |
89,567 |
|
|
------------------ |
------------------ |
------------------ |
|
Total assets |
4,254,178 |
4,501,735 |
5,027,502 |
|
|
============= |
============= |
============= |
|
Short-term loans |
130,000 |
20,000 |
265,000 |
|
Held for trading financial liabilities |
0 |
0 |
0 |
|
Notes payable |
85,181 |
105,440 |
299,930 |
|
Accounts payable |
826,866 |
775,120 |
812,519 |
|
Advances from clients |
96,330 |
88,512 |
85,437 |
|
Payroll payable |
12,475 |
14,590 |
37,797 |
|
Tax payable |
-13,679 |
37,757 |
7,134 |
|
Interest payable |
0 |
0 |
0 |
|
Dividend payable |
3,132 |
3,133 |
3,588 |
|
Other payable |
51,900 |
70,199 |
48,342 |
|
Current liabilities due within one year |
7,000 |
93,000 |
135,000 |
|
Other current liabilities |
0 |
0 |
0 |
|
|
------------------ |
------------------ |
------------------ |
|
Current liabilities |
1,199,205 |
1,207,751 |
1,694,747 |
|
Non-current liabilities |
117,308 |
154,658 |
15,253 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities |
1,316,513 |
1,362,409 |
1,710,000 |
|
Equities |
2,937,665 |
3,139,326 |
3,317,502 |
|
|
------------------ |
------------------ |
------------------ |
|
Total liabilities & equities |
4,254,178 |
4,501,735 |
5,027,502 |
|
|
============= |
============= |
============= |
Income Statement
|
Unit: CNY’000 |
As of Dec. 31, 2012 |
As of Dec. 31, 2013 |
As of Dec. 31, 2014 |
|
Revenue |
8,122,734 |
7,437,710 |
7,352,544 |
|
Cost of
sales |
7,445,543 |
6,726,513 |
6,579,030 |
|
Taxes and
surcharges |
19,030 |
19,723 |
13,539 |
|
Sales expense |
79,919 |
85,050 |
89,135 |
|
Management expense |
355,638 |
320,498 |
314,317 |
|
Finance expense |
6,609 |
31,435 |
12,094 |
|
Non-operating income |
65,043 |
5,224 |
19,971 |
|
Non-operating expense |
6,769 |
280 |
16,631 |
|
Profit before tax |
261,829 |
235,776 |
296,757 |
|
Less: profit tax |
43,608 |
34,114 |
28,700 |
|
Profits |
218,221 |
201,662 |
268,057 |
Important Ratios
=============
|
|
As of Dec. 31,
2012 |
As of Dec. 31,
2013 |
As of Dec. 31,
2014 |
|
*Current ratio |
1.30 |
1.60 |
1.45 |
|
*Quick ratio |
0.57 |
0.82 |
0.86 |
|
*Liabilities to assets |
0.31 |
0.30 |
0.34 |
|
*Net profit margin (%) |
2.69 |
2.71 |
3.65 |
|
*Return on total assets (%) |
5.13 |
4.48 |
5.33 |
|
*Inventory / Revenue ×365 |
40 days |
46 days |
50 days |
|
*Accounts receivable / Revenue ×365 |
13 days |
18 days |
18 days |
|
*Revenue / Total assets |
1.91 |
1.65 |
1.46 |
|
*Cost of sales / Revenue |
0.92 |
0.90 |
0.89 |
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 sales is average, comparing with its
revenue.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC is maintained in an average
level.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loans are in an average level.
l
SC’s revenue is in an average level, comparing with
the size of its total assets.
LEVERAGE: FAIRLY
GOOD
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.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.01 |
|
|
1 |
Rs.99.84 |
|
Euro |
1 |
Rs.70.16 |
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.