MIRA INFORM REPORT
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Report No. : |
354280 |
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Report Date : |
16.12.2015 |
IDENTIFICATION DETAILS
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Name : |
SHANGHAI KRUPP
STAINLESS Co., Ltd. |
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Registered Office : |
No. 21, Tongyao Road, Pudong New District, Shanghai, 200126 Pr |
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Country : |
China |
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Financials (as on) : |
30.09.2015 |
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Date of Incorporation : |
07.04.1998 |
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Com. Reg. No.: |
310000400191427 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing stainless steels and its products, selling self-made
products and providing related technology consulting, technology services,
and after-sale services; leasing its houses at the address of No. 21, Tongyao
Road, Pudong New Area, Shanghai. |
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No. of Employees : |
460 |
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 : |
Slow but correct |
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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 – March 31, 2015
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Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
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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 |
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. 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.
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Source
: CIA |
Company
Name & address
SHANGHAI KRUPP STAINLESS Co., Ltd.
NO. 21, TONGYAO ROAD, pudong new district,
shanghai, 200126 PR CHINA.
TEL: 86 (0) 21-38874887-2119 FAX:
86 (0) 21-68702025
EXECUTIVE
SUMMARY
INCORPORATION DATE : april 7, 1998
REGISTRATION NO. : 310000400191427
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. hu xuefa (CHAIRMAN)
STAFF STRENGTH :
460
REGISTERED CAPITAL : usd 428,900,000
BUSINESS LINE :
MANUFACTURING AND tRADING
TURNOVER :
CNY
1,939,930,000 (JAN. 1 TO SEP. 30, 2015)
EQUITIES :
CNY 430,940,000 (AS OF SEP. 30,
2015)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY STABLE
OPERATIONAL TREND : FAIRLY steady
GENERAL REPUTATION : average
EXCHANGE RATE :
CNY 6.4574 = 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 Renminbi
SC was registered as a Chinese-foreign equity joint venture enterprise
at local Administration for Industry & Commerce (AIC - The official body of
issuing and renewing business license) on April 7, 1998.
Company Status: Chinese-foreign equity joint venture
enterprise This form of
business in PR China is defined as a legal person. It is a limited co. jointly
invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The joint venture usually have a limited duration of 10 to 50 years. Enterprise
with large investment, long construction periods, low investment returns,
introducing of advanced technology & advanced technology products which
have good competition position in international market may extend beyond
the 50 years limit.
SC’s registered business scope includes manufacturing stainless steels
and its products, selling self-made products and providing related technology
consulting, technology services, and after-sale services; leasing its houses at
the address of No. 21, Tongyao Road, Pudong New Area, Shanghai.
SC is mainly engaged in manufacturing and selling stainless steel
products.
Mr.
Hu Xuefa is legal representative and chairman of SC at
present.
SC is known to have approx. 460 employees at present.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in the industrial zone of Shanghai. Our
checks reveal that SC owns the total premise about 424,000 square meters.
http://www.skschina.com/ The design is professional and the content is well
organized. At present it is in both Chinese and English versions.
Email: john.wu@skschina.com
; billy.tan@skschina.com
Changes
of its registered information are as follows:
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Date of change |
Item |
Before the change |
After the change |
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2002 |
Legal representative |
Chen Haisheng |
Hu Xuefa |
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2010-1 |
Legal representative |
Lou Dingbo |
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Unspecified |
Shareholder’s name |
Shanghai Pudong Steel Co., Ltd. |
Baosteel Group Shanghai Pudong Iron & Steel Co., Ltd. 40 |
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Registration No. |
024761 |
310000400191427 |
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Legal representative |
Lou Dingbo |
Cui Jian |
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Shareholder’s name |
ThyssenKrupp Nirosta GmbH (Germany) |
Outokumpu Nirosta GmbH (Germany) |
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2014-8-8 |
Legal representative |
Cui Jian |
Hu Xuefa |
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2015 |
Shareholders |
Outokumpu Nirosta GmbH (Germany) 60% Baosteel Group Shanghai Pudong Iron & Steel Co., Ltd. 40% |
present ones |
SC’s quality system meets the international standards of ISO 9001.
Tax Registration Certificate No.: 310115607391132
Organization code: 607391132
Credibility Code:
91310000607391132Y
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Lujiazui International Trust Corporation Limited 55
Outokumpu Nirosta GmbH (Germany) 5
Baosteel
Group Shanghai Pudong Iron & Steel Co., Ltd. 40
Lujiazui International Trust Corporation Limited
=================================
Credibility Code: 91370200756903541E
Legal representative: Chang Hong
Registered capital: CNY 3,000,000,000
Tel: 0532-55673577
Fax: 0532-55673599
Email: ljzxt@ljzitc.com.cn
Outokumpu Nirosta GmbH (Germany)
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Outokumpu Nirosta is a business segment of
Outokumpu, headquartered in Krefeld, Germany. It produces flats of stainless
steel. Formerly, it was named ThyssenKrupp Nirosta and part of ThyssenKrupp AG.
Baosteel Group Shanghai Pudong Iron &
Steel Co., Ltd.
========================================
Incorporation date: May 23, 1996
Registration no.: 310115000334789
Legal representative: Zhu Hua
Legal form: One-person Limited Liability
Company
Legal
representative and chairman:
Mr. Hu Xuefa is currently responsible for
the overall management of SC.
Working Experience(s):
At present Working
in SC as chairman and legal representative
Vice-chairman:
Philipp Voet Van Vormizeele is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working
in SC as vice-chairman
General manager:
Tian Wei is currently responsible for the
daily management of SC.
Working Experience(s):
From Oct., 2015 to present Working in SC as general
manager
Directors:
Marc-Simon Schaar
Jan Harald Hofmann
He Ruying
SC is mainly engaged in manufacturing and
selling stainless steel products.
SC’s products mainly include cold rolled
wide strip, slit strips and sheets, austenitic and ferrite grades.
SC sources its materials 50% from domestic
market, and 50% from overseas market, mainly Germany and Italy. SC sells 90% of
its products in domestic market, and 10% 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 customer and supplier details.
SC is not known to have any subsidiary at
present.
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.
Industrial & Commercial Bank of China
Shanghai Branch No. 2 Office
AC#：021907-1001190709016261997
Relationship: Normal.
Financial Summary
===============
Unit: CNY’000
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Total assets |
1,748,410 |
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========= |
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Total
liabilities |
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Equities |
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-------------- |
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Total
liabilities & equities |
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========= |
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Jan.
1 to Sep. 30, 2015 |
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Turnover |
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Profits |
Note: SC’s management refused to release its
detailed financial reports.
Important Ratios
=============
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As
of Sep. 30, 2015 |
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*Liabilities to
assets |
0.75 |
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*Net profit
margin (%) |
-8.46 |
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*Return on total
assets (%) |
-9.39 |
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*Turnover/Total
assets |
1.11 |
PROFITABILITY:
FAIR
The turnover of SC appears good in its line.
SC’s net profit margin is fair.
SC’s return on total assets is fair.
SC’s turnover is in an average 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.
SC is considered medium-sized in its line
with fairly stable financial conditions.
FOREIGN EXCHANGE
RATES
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Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.67.04 |
|
|
1 |
Rs.101.67 |
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Euro |
1 |
Rs.73.93 |
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CNY |
1 |
Rs.10.32 |
Note
: Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis
Done by : |
KAR |
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Report
Prepared by : |
TPT |
RATING
EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT
LINE |
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>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 |
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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 |
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41-55 |
Ba |
Overall operation
is considered normal. Capable to meet normal commitments. |
Satisfactory |
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26-40 |
B |
Capability to
overcome financial difficulties seems comparatively below average. |
Small |
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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 |
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<10 |
C |
Absolute credit
risk exists. Caution needed to be exercised |
Credit not recommended |
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-- |
NB |
New Business |
-- |
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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.