MIRA INFORM REPORT
|
Report No. : |
353869 |
|
Report Date : |
14.12.2015 |
IDENTIFICATION DETAILS
|
Name : |
ANHUI HONGLU STEEL CONSTRUCTION (GROUP) CO., LTD. |
|
|
|
|
Registered Office : |
Shuangfeng Economy Development Zone, Hefei City, Anhui Province,
231131 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
31.12.2014 |
|
|
|
|
Date of Incorporation : |
19.09.2002 |
|
|
|
|
Com. Reg. No.: |
340121000003533 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Manufacturing and installing steel structure, color plate;
manufacturing and selling new type building material; manufacturing,
installing, modifying, maintaining hoisting machinery; manufacturing,
installing and selling door, building external window; manufacturing,
processing and selling metal standard parts, machinery parts, hardware,
electrical accessories, plastic products; manufacturing and selling welding
material; design of steel structure |
|
|
|
|
No. of Employee : |
6,851 |
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 |
|
|
|
|
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 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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, 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.
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 2014
stood as the largest economy in the world, surpassing the US for the first time
in modern history. Still, China's per capita income is below the world average.
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. In 2014 the People’s Bank
of China (PBOC) doubled the daily trading band within which the RMB is
permitted to fluctuate.
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 2014 more than 274 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. In 2014 China agreed to begin
limiting carbon dioxide emissions by 2030. China also implemented several economic
reforms in 2014, including passing legislation to allow local governments to
issue bonds, opening several state-owned enterprises to further private
investment, loosening the one-child policy, passing harsher pollution fines,
and cutting administrative red tape.
|
Source
: CIA |
Company
name and address
ANHUI HONGLU
STEEL CONSTRUCTION (GROUP) CO., LTD.
SHUANGFENG ECONOMY
DEVELOPMENT ZONE, HEFEI CITY,
ANHUI PROVINCE, 231131 PR CHINA
TEL: 86 (0)
551-66391405 FAX: 86 (0)
551-66391725
EXECUTIVE
SUMMARY
INCORPORATION
DATE : Sep. 19,
2002
REGISTRATION
NO. :
340121000003533
REGISTERED
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF
EXECUTIVE :
MR. Kai Jinwei (legal
representative)
STAFF
STRENGTH :
6,851 (as of dec. 31, 2014)
REGISTERED
CAPITAL : CNY 268,000,000
BUSINESS
LINE :
MANUFACTURING & trading
TURNOVER : cny 2,132,325,000 (Consolidated, Jan.
1 to SEP. 30, 2015)
EQUITIES :
cny 2,463,645,000 (Consolidated, AS OF sep. 30, 2015)
PAYMENT
:
AVERAGE
MARKET
CONDITION :
COMPETITIVE
FINANCIAL
CONDITION : FAIRLY
stable
OPERATIONAL
TREND : STEADY
GENERAL
REPUTATION : AVERAGE
EXCHANGE
RATE : CNY
6.4378= USD 1
Adopted abbreviations:
ANS - amount not
stated
NS - not stated
SC - subject
company (the company inquired by you)
NA - not available
CNY - China Yuan
Ren Min Bi
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image021.gif){kind=small}
SC was registered
as a shares limited company at local Administration for Industry & Commerce
(AIC - The official body of issuing and renewing business license).
Company Status: Shares limited co. This form of business in PR
China is defined as a legal person. Its registered capital is divided into
shares of equal par value and the co. raises capital by issuing share
certificates by promotion or by public offer. Shareholders bear limited
liability to the extent of shareholding, and the co. is liable for its
debts only to the extent of its total assets. The co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist of five to nineteen directors. If the co.
raises capital by public offer, the promoters must not subscribe less than
35% of the total shares. the promoters’ shares are restricted to transfer-
within one year of the offer. A state-owned enterprise that
is restructured into a shares limited co. must comply with the conditions
& requirements specified under the law & administrative rule.
SC’s registered
business scope includes manufacturing and installing steel structure, color
plate; manufacturing and selling new type building material; manufacturing, installing,
modifying, maintaining hoisting machinery; manufacturing, installing and
selling door, building external window; manufacturing, processing and selling
metal standard parts, machinery parts, hardware, electrical accessories,
plastic products; manufacturing and selling welding material; design of steel
structure (operating in the period of validity of the license).
SC is mainly
engaged in manufacturing and selling steel structure and new type building
materials.
Mr. Kai Jinwei is
the legal representative and general manager of SC at present.
SC is known to
have approx. 6,851 employees as of Dec. 31, 2014, including 5,131
production staff, 598 sales staff and 1,122 management staff.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the economy development zone of Hefei. Detailed premise
information is not available at present.
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image022.gif){kind=small}
www.hong-lu.com The design is professional and
the content is well organized. At present it is in Chinese and English
versions.
E-Mail: wangguosheng0731@163.com
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image023.gif){kind=small}
SC was listed in
Shenzhen Stock Exchange Market on Jan. 18, 2011with the stock code 002541.
Changes of SC’s registered information:
|
Date |
Item |
Before changed |
After changed |
|
2005-11-2 |
Company name |
Anhui Honglu
Steel Construction Co., Ltd. |
Anhui Honglu
Steel Construction (Group) Co., Ltd. |
|
2007-12-26 |
Company Chinese
name |
|
Present one |
|
Legal form |
Limited
liabilities co. |
Present one |
Note: In 2007, SC
changed is Chinese name, while its English name remains the same.
Organization Code:
743065219
Tax No.:
340121743065219
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image024.gif){kind=small}
See below for SC as
executive party (defendant).
|
Executed Party |
SC |
|
Court |
Huangzhou
District People's Court |
|
Date of Case |
2015-11-24 |
|
Case Number |
(2015) 00655 |
|
Claim Amount |
CNY 684,134.6 |
|
Case Status |
-- |
|
Executed Party |
SC |
|
Court |
Anhui Province
Suzhou City Intermediate People's Court |
|
Date of Case |
2015-10-09 |
|
Case Number |
(2015) 00292 |
|
Claim Amount |
CNY 1,451,877.8 |
|
Case Status |
-- |
|
Executed Party |
SC |
|
Court |
Yangzhou City Hanjiang District People's Court |
|
Date of Case |
2015-05-27 |
|
Case Number |
(2015) 01251 |
|
Claim Amount |
CNY 38,819 |
|
Case Status |
-- |
Remark: Due to the lack of information, we are unable to provide the cause of action,
judgment or other information.
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image025.gif){kind=small}
MAIN SHAREHOLDERS: (As of Sep. 30, 2015)
Name
% of Shareholding
Shang Xiaobo 48.24
Deng Yefang 13.81
Shi Jian’gang 2.05
Shang Xiaohong 1.34
Shang Xiaofei 1.34
Deng Binfeng 1.34
Central Huijin
Investment Ltd. 1.28
Wan Shengping 1.23
Changsheng Chuangfu
Asset Management- Bank of Ningbo-
Changsheng
Chuangfu- Shenghong No. 1 Specific Asset
Management
Plan (Literal
Translation) 0.97
Liu Jing 0.89
Other shareholders 27.51
Central Huijin
Investment Ltd.
===========================
Incorporation Date:
2003-12-16
Registered No.:
100000000038533
Legal
Representative: Ding Xuedong
Website: http://www.huijin-inv.cn/
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image026.gif){kind=small}
Legal Representative and
General Manager:
Mr. Kai Jinwei, ID#
42900519691119XXXX, born in 1969, with university education, senior engineer,
national registered first class constructor. He is currently responsible for
the daily management of SC.
Working Experience(s):
At present Working in SC as legal
representative and general manager.
Chairman and Director:
Mr. Shang Xiaobo, born
in 1974. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman
and director.
Vice Managers:
Mr. Wan Shengping,
born in 1972, with junior college education, senior economist, accountants;
Mr. Wang Junmin,
born in 1965, engineer, certified public accountants;
Mr. Hao Jingyue,
born in 1972, with university education, engineer, human resources management
division;
Mr. Wang Guosheng,
born in 1969, with university education, medium-grade professional title;
Ms. Yao Hongwei,
born in 1979, with junior college education, engineer.
They are currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as vice
managers.
Mr. Wang Junmin is
also working in Anhui Huashen Economic Development Co., Ltd. (Literal
Translation) and Anhui Hongxiang Building Materials Co., Ltd. (Literal
Translation) as legal representative, executive director and general manager.
Mr. Hao Jingyue is
also working in Anhui Honglu Steel Construction (Group) Co., Ltd. Qingdao
Branch, Anhui Honglu Steel Construction (Group) Co., Ltd. Guangzhou Branch and
Anhui Honglu Steel Construction (Group) Co., Ltd. Shenzhen Branch as principal.
Directors:
Luo Yuanqing
Ren Dehui
Shang Xiaohong
Wan Shengping
Supervisors:
Shen Xiaoping
Yang Chunjing
Hu Gengwu
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image027.gif){kind=small}
SC is mainly
engaged in manufacturing and selling steel structure and new type building
materials.
SC’s products
mainly include:
Steel structure:
High-rise steel structure, Space steel structure, Equipment steel structure,
Bridge steel structure;
Heavy machinery and
tubulation products: hoisting equipment, JCOE steel tube, Rolled steel pipe;
Matching products:
Standard component, doors and windows, welding stick;
PVC products: Model
steel tile, PVC shingle, ASA plastic particles;
Steel products:
PPGI, steel strip roll, sheet material, proximate matter
SC sources its
materials 97% from domestic market and 3% from overseas market. SC sells 95% of
its products in domestic market and 5% 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 Check, T/T, L/C and Credit of 30-60 days.
Note: SC’s management
declined to release its main clients and suppliers.
Trademarks &
patents
Registration no.: 5644369
Registration date: 2010-2-7
Trademark design: %20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image028.jpg)
Registration no.: 15037002
Registration date: 2015-8-14
Trademark design: %20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image029.jpg){kind=small}
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image030.gif){kind=small}
SC is known to invest in the following
companies:
Hubei Honglu Steel
Structure Co., Ltd.
========================================
Incorporation Date:
2007-7-21
Registered No.:
421121000003408
Legal
Representative: Wang Yong
Anhui Huashen Economic
Development Co., Ltd. (Literal Translation)
========================================
Incorporation Date:
2002-11-7
Registered No.:
340121000030819
Legal
Representative: Wang Junmin
Anhui Hongxiang
Building Materials Co., Ltd. (Literal Translation)
========================================
Incorporation Date:
2005-10-28
Registered No.:
340121000002586
Legal
Representative: Wang Junmin
Branches:
Anhui Honglu Steel
Construction (Group) Co., Ltd. Tianchang City Branch
===================================
Incorporation date:
2011-11-3
Registration no.:
341181000057861
Principal: Yao Hui
Anhui Honglu Steel
Construction (Group) Co., Ltd. Steel Structure Engineering Branch
===================================
Incorporation date:
2011-11-29
Registration no.:
340121000048016
Principal: Ji
Chengjie
Anhui Honglu Steel
Construction (Group) Co., Ltd. Weifang Branch
===================================
Incorporation date:
2014-05-04
Registration no.:
370705300010635
Principal: Ji
Chengjie
Anhui Honglu Steel Construction
(Group) Co., Ltd. Qingdao Branch
===================================
Incorporation date:
2014-06-27
Registration no.:
370281330015881
Principal: Hao
Jingyue
Anhui Honglu Steel
Construction (Group) Co., Ltd. Guangzhou Branch
===================================
Incorporation date:
2014-09-26
Registration no.:
440105000393754
Principal: Hao
Jingyue
Anhui Honglu Steel
Construction (Group) Co., Ltd. Shenzhen Branch
===================================
Incorporation date:
2015-06-10
Registration no.:
440301113091869
Principal: Hao
Jingyue
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image031.gif){kind=small}
Overall payment
appraisal:
( ) Excellent (
) Good (X) Average (
) Fair ( ) Poor
( ) Not yet 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.
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image032.gif){kind=small}
SC’s bank details
are not disclosed at present.
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image033.gif){kind=small}
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of Sep. 30, 2015 |
As of Dec. 31, 2014 |
|
1,074,385 |
977,699 |
|
|
Notes receivable |
51,589 |
119,129 |
|
Accounts receivable |
1,691,902 |
1,646,522 |
|
Advances to suppliers |
63,019 |
63,833 |
|
Other receivables |
210,794 |
149,464 |
|
Inventory |
2,644,015 |
2,678,561 |
|
Other current assets |
16,409 |
15,493 |
|
|
------------------ |
------------------ |
|
Current assets |
5,752,113 |
5,650,701 |
|
Available-for-sale
financial assets |
1,000 |
1,000 |
|
Long term equity investment |
21,624 |
23,036 |
|
Fixed assets |
1,182,467 |
1,252,783 |
|
Projects under
construction |
183,091 |
157,019 |
|
Engineering
material |
1,143 |
25,153 |
|
Intangible assets |
237,800 |
244,658 |
|
Deferred tax
assets |
39,665 |
40,003 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total assets |
7,418,903 |
7,394,353 |
|
|
============= |
============= |
|
Short loans |
1,406,950 |
1,610,850 |
|
Bills payable |
2,187,214 |
1,993,065 |
|
Accounts payable |
611,784 |
724,727 |
|
Advances from
clients |
434,122 |
337,109 |
|
Payroll payable |
30,809 |
67,588 |
|
Taxes payable |
53,022 |
74,711 |
|
Interest payable |
2,124 |
3,092 |
|
Other payable |
89,652 |
73,206 |
|
Non-current liabilities
due within one year |
94,000 |
0 |
|
|
------------------ |
------------------ |
|
Current
liabilities |
4,909,677 |
4,884,348 |
|
Long-term loans |
0 |
97,000 |
|
Anticipation
liabilities |
0 |
1,000 |
|
Deferred income |
45,581 |
48,515 |
|
|
------------------ |
------------------ |
|
Total liabilities |
4,955,258 |
5,030,863 |
|
Equities |
2,463,645 |
2,363,490 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
7,418,903 |
7,394,353 |
|
|
============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
Jan. 1 to Sep. 30, 2015 |
As of Dec. 31, 2014 |
|
Turnover |
2,132,325 |
4,225,151 |
|
Cost of goods
sold |
1,693,323 |
3,494,257 |
|
Taxes and
additional of main operation |
23,426 |
38,718 |
|
Sales expense |
80,767 |
104,142 |
|
Management expense |
122,201 |
165,491 |
|
Finance expense |
85,180 |
179,875 |
|
Assets impairment loss |
5,639 |
8,5781 |
|
Investment income |
11,275 |
-760 |
|
Non-operating
income |
9,453 |
16,391 |
|
Non-operating expense |
1,702 |
1,789 |
|
Profit before tax |
140,815 |
170,729 |
|
Less: profit tax |
21,900 |
32,766 |
|
Profits |
118,915 |
137,963 |
Important Ratios
=============
|
|
As of Sep. 30, 2015 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.17 |
1.16 |
|
*Quick ratio |
0.63 |
0.61 |
|
*Liabilities to
assets |
0.67 |
0.68 |
|
*Net profit margin
(%) |
5.58 |
3.27 |
|
*Return on total
assets (%) |
1.60 |
1.87 |
|
*Inventory
/Turnover ×365 |
/ |
232 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
143 days |
|
*Turnover/Total
assets |
0.29 |
0.57 |
|
*Cost of goods
sold/Turnover |
0.79 |
0.83 |
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image034.gif){kind=small}
PROFITABILITY: FAIRLY GOOD
The turnover of SC
appears good in its line.
SC’s net profit
margin is average in 2014, and fairly good in the first three quarters of 2015.
SC’s return on
total assets is average
SC’s cost of goods
sold is average, comparing with its turnover.
LIQUIDITY: FAIR
The current ratio
of SC is maintained in a fair level.
SC’s quick ratio of
SC is maintained in a fair level.
The inventory of SC
is fairly large.
The accounts
receivable of SC is average.
SC’s short loans
are fairly large.
SC’s turnover 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 average.
Overall financial condition of the SC:
Fairly stable
%20CO.,%20LTD.%20-%20353869%2014-Dec-2015_files/image035.gif){kind=small}
SC is considered
large-sized in its line with fairly stable financial conditions. The fairly
large amount of inventory and short loans could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.79 |
|
|
1 |
Rs.101.10 |
|
Euro |
1 |
Rs.73.10 |
|
CNY |
1 |
Rs.10.38 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
KIN |
|
|
|
|
Report Prepared
by : |
ANK |
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.