MIRA INFORM REPORT
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Report No. : |
354945 |
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Report Date : |
19.12.2015 |
IDENTIFICATION DETAILS
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Name : |
Xingtai Iron &
Steel Corp., Ltd. |
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Registered Office : |
No. 262 Gangtie South Road, Qiaoxi District, Xingtai, Hebei Province, 054099
Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
22.01.1997 |
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Com. Reg. No.: |
130000400001688 |
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Legal Form : |
Wholly Foreign-Owned Enterprise |
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Line of Business : |
Subject is engaged in iron and steel smelting; pressing rolling; steel
products deep processing; development and manufacture of high-grade hardware
and building hardware; manufacture of key auto parts (excluding engine);
manufacture of coke and coal tar, crude benzene, coke oven gas, ammonium
sulfate, ammonium thiocyanate, ammonium thiosulfate, sulfur, ammonium by
products (the license is valid until July 1, 2018); sales of own products;
smelting technology development and service; import and export of goods and
technology (excluding those limited by the state, and excluding distribution
business); wholesale and retail of similar and related products (if needed
with approval or permit). |
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No. of Employees : |
6,773 (AS OF DEC. 31, 2012) |
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 : |
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 – March 31, 2015
|
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
Xingtai Iron & Steel Corp., Ltd.
No. 262 gangtie south road,
qiaoxi district,
xingtai, hebei PROVINCE, 054099 PR CHINA
TEL: 86 (0) 319-2042022 FAX: 86 (0) 319-2624517
EXECUTIVE
SUMMARY
INCORPORATION DATE : JAN. 22, 1997
REGISTRATION NO. : 130000400001688
REGISTERED LEGAL FORM : WHOLLY
FOREIGN-OWNED ENTERPRISE
CHIEF EXECUTIVE :
Mr. Yuan xixian (legal representative)
STAFF STRENGTH :
6,773 (AS OF DEC. 31, 2012)
REGISTERED CAPITAL : CNY
600,000,000
BUSINESS LINE :
TRADING and manufacturing
TURNOVER :
CNY 3,605,770,000 (Consolidated, jan. 1~jun. 30, 2015)
EQUITIES :
CNY 2,621,596,000 (Consolidated, AS OF jun. 30, 2015)
PAYMENT :
AVERAGE
MARKET CONDITION : competitive
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
fairly steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.4608 = 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 wholly foreign-owned enterprise at local
Administration for Industry & Commerce (AIC - The official body of issuing
and renewing business license) on Jan. 22, 1997.
Company Status: Wholly foreign-owned enterprise This form of business in PR China is defined as a legal
person. It is a limited co. established within the territories of PR China
with capital provided totally by the foreign investors. More than one
foreign investor may jointly invest in a wholly foreign-owned enterprise.
The investing party/parties solely exercise management, reap profit and
bear risks and liabilities by themselves. This form of companies usually
have a limited duration is extendible upon approval of Examination and
Approval Authorities.
SC’s registered business scope includes licensed business items: iron and steel smelting; pressing rolling;
steel products deep processing; development and manufacture of high-grade hardware
and building hardware; manufacture of key auto parts (excluding engine);
manufacture of coke and coal tar, crude benzene, coke oven gas, ammonium
sulfate, ammonium thiocyanate, ammonium thiosulfate, sulfur, ammonium by
products (the license is valid until July 1, 2018); sales of own products;
smelting technology development and service; import and export of goods and
technology (excluding those limited by the state, and excluding distribution
business); wholesale and retail of similar and related products (if needed with
approval or permit).
SC is mainly engaged in manufacturing and sales of iron and steel
products.
Mr. Yuan Xixian has been legal representative, general manager and
chairman of SC since May, 2015.
SC is known to have approx. 6,773
employees as of Dec. 31, 2012.
SC is currently operating at the above stated address, and this address
houses its operating office and factory in Xingtai. Detailed premise
information is not available at present.
http://www.xtsteel.com/
The design is professional and the content is well organized. At present it is
in English and Chinese versions.
Email: office@xtsteel.com
For the past two years there is no record of litigation.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2015-5-13 |
Legal representative |
Yuan Shizhen袁世臻 |
Present one |
Organization Code: 105783910
MAIN SHAREHOLDERS:
Name %
of Shareholding
Xingtai Precision Steel Wire Rod Holding Limited (Hong Kong) 100
CR No.: 1256232
Company Type: Private company limited by shares
Active Status: Live
Legal
Representative, General Manager and Chairman:
Mr. Yuan Xixian, born in 1962, with university education, senior engineer.
He is currently responsible for the overall management of SC.
Working Experience(s):
From May, 2015 to present Working
in SC as legal representative, general manager and chairman;
Also working in Beijing Xingtai Steel Weldmesh &Technology Development
Co., Ltd. as legal representative.
Directors:
Chen Kaili
Qin Gang
Liu Hongwei
Supervisors:
Liang Feng
Zhu Jietao
Wu Guijie
SC is mainly engaged in manufacturing and sales of iron and steel
products.
SC’s products mainly include: Cold heading steel.
SC sources its materials 70% from domestic market, and 30% from overseas
market. SC sells 80% of its products in domestic market, and 20% 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 declined to release its major suppliers and clients.
Trademark & Patents
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Registration No. |
4770648 |
4770644 |
4770649 |
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Registration Date |
2009-2-14 |
2008-6-7 |
2009-2-14 |
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Trademark Design |
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Xingtai Iron & Steel Corp., Ltd. Chongqing Branch
===================================
Incorporation Date: 2011-5-17
Registration No.: 500000500061579
Principal: Wang Chenliang
SC is known to invest in the following
companies:
Beijing Singu Keller Automotive Cold Forming Parts Co., Ltd.
=============================================
Incorporation Date: 2004-08-13
Registration No.: 110000410294058
Legal representative: Yuan Shizhen
Website: http://www.singukeller.com/
Beijing Xingtai Steel Weldmesh &Technology Development Co., Ltd.
==================================================
Incorporation Date: 2002-01-10
Registration No.: 110112003501481
Legal representative: Yuan Xixian
Website: http://www.xgmesh.com/
XingTai Steel Precision Engineering Co., Ltd.
===============================
Incorporation Date: 2010-7-19
Credibility Code: 91130501559089413R
Legal representative: Hou Yuehua
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.
SC’s accountant refused to release the bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Jun. 30,
2015 |
As of Dec. 31,
2014 |
|
Cash & bank |
761,450 |
556,657 |
|
Note receivable |
116,346 |
194,569 |
|
Accounts receivable |
287,504 |
233,385 |
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Advances to supplies |
88,383 |
74,510 |
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Other Accounts receivable |
77,532 |
79,538 |
|
Inventory |
1,408,930 |
1,590,178 |
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Other current assets |
89,190 |
88,401 |
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|
------------------ |
------------------ |
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Current assets |
2,829,335 |
2,817,238 |
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Investment real estate |
17,159 |
102,303 |
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Fixed assets net value |
5,820,433 |
5,523,671 |
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Projects under construction |
761,274 |
1,023,208 |
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Projects materials |
802 |
2,420 |
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Liquidation of fixed assets |
-3,680 |
0 |
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Intangible assets |
500,181 |
438,075 |
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Goodwill |
21,052 |
21,052 |
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Deferred tax assets |
6,091 |
6,091 |
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Long term deferred expenses |
5,427 |
6,179 |
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------------------ |
------------------ |
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Total assets |
9,958,074 |
9,940,237 |
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============= |
============= |
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Short loans |
564,398 |
330,367 |
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Note payable |
1,957,500 |
1,392,100 |
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Accounts payable |
2,255,076 |
2,865,379 |
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Advances from customers |
474,363 |
369,549 |
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Payroll payable |
19,655 |
26,850 |
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Taxes payable |
3,541 |
45,429 |
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Interest payable` |
307 |
211 |
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Dividend payable |
1,254 |
78 |
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Other Accounts payable |
20,473 |
23,646 |
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Non-current liabilities due within one year |
17,549 |
35,867 |
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Other current liabilities |
28,510 |
20,612 |
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------------------ |
------------------ |
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Current liabilities |
5,342,626 |
5,110,088 |
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Non-current liabilities |
1,993,852 |
2,254,980 |
|
|
------------------ |
------------------ |
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Total liabilities |
7,336,478 |
7,365,068 |
|
Equities |
2,621,596 |
2,575,169 |
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|
------------------ |
------------------ |
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Total liabilities & equities |
9,958,074 |
9,940,237 |
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|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan. 1~ Jun. 30,
2015 |
As of Dec. 31,
2014 |
|
Turnover |
3,605,770 |
8,943,189 |
|
Cost of goods sold |
3,249,461 |
8,162,495 |
|
Taxes and additional of main operation |
14,404 |
19,009 |
|
Sales expense |
42,062 |
86,470 |
|
Management expense |
183,148 |
408,049 |
|
Finance expense |
89,059 |
185,016 |
|
Assets impairment loss |
0 |
7,197 |
|
Profit arising from fair value changes |
0 |
35,023 |
|
Investment income |
83 |
2,563 |
|
Non-operating income |
1,396 |
6,749 |
|
Non-operating expense |
16 |
2,599 |
|
Profit before tax |
29,099 |
116,689 |
|
Less: profit tax |
-14,333 |
12,481 |
|
Profits |
43,432 |
104,208 |
Important
Ratios
=============
|
|
As of Jun. 30,
2015 |
As of Dec. 31,
2014 |
|
*Current ratio |
0.53 |
0.55 |
|
*Quick ratio |
0.27 |
0.24 |
|
*Liabilities to assets |
0.74 |
0.74 |
|
*Net profit margin (%) |
1.20 |
1.17 |
|
*Return on total assets (%) |
0.44 |
1.05 |
|
*Inventory /Turnover ×365 |
/ |
65 days |
|
*Accounts receivable/Turnover ×365 |
/ |
10 days |
|
*Turnover/Total assets |
0.36 |
0.90 |
|
* Cost of goods sold/Turnover |
0.90 |
0.91 |
PROFITABILITY:
AVERAGE
The turnover of SC appears good in its line.
SC’s net profit margin is average.
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 is maintained in a poor level.
The inventory of SC appears fairly large.
The accounts receivable of SC is average.
SC’s short-term loan appears average.
SC’s turnover is in an average level in 2014, 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 low.
Overall financial condition of the SC: Fairly stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The fairly large amount of inventory could be a threat to SC’s
financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.66.42 |
|
|
1 |
Rs.99.17 |
|
Euro |
1 |
Rs.72.14 |
|
CNY |
1 |
Rs.10.23 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
HEE |
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Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
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 |
|
|
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.