MIRA INFORM REPORT
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Report No. : |
308714 |
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Report Date : |
25.02.2015 |
IDENTIFICATION DETAILS
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Name : |
Jilin Jianlong
Steel Corporation Ltd. |
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Registered Office : |
Jinzhu Town, Longtan District, Jilin City
Jilin Province 132104 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2013 |
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Date of Incorporation : |
01.05.2001 |
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Com. Reg. No.: |
220284000007553 |
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Legal Form : |
Limited Liability Company |
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Line of Business : |
Manufacturing and Selling of Iron and Steel Products. |
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No. of Employees : |
3,000 |
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 : |
No Complaints |
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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
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Country Name |
Previous Rating (30.09.2014) |
Current Rating (31.12.2014) |
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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.
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.
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Source
: CIA |
Company
name and address
Jilin Jianlong Steel Corporation Ltd.
JInzhu Town, Longtan
District, Jilin City
Jilin Province 132104
PR China
TEL: 86 (0) 432-65018004
FAX: 86 (0)
432-65018777
EXECUTIVE
SUMMARY
Date of Registration : may 1, 2001
REGISTRATION NO. : 220284000007553
LEGAL FORM : Limited Liability Company
REGISTERED CAPITAL : CNY
2,732,000,000
staff : 3,000
BUSINESS CATEGORY : MANUFACTURING
& TRADING
Revenue : CNY 11,858,943,000 (AS OF DEC. 31, 2013)
EQUITIES : CNY 6,126,036,000 (AS OF DEC. 31, 2013)
WEBSITE : www.jilinsteel.com
E-MAIL : N/A
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.25 = 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 limited liabilities company of PRC with State Administration of Industry
& Commerce (SAIC) under registration No.: 220284000007553
on May 1, 2001.
SC’s Organization Code Certificate No.:
72676093-0
SC’s registered capital: CNY 2,732,000,000
SC’s paid-in capital: CNY 2,732,000,000
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) |
% of Shareholding |
|
Beijing
Huaxia Jianlong Mining Science & Technology Co., Ltd. |
28.56 |
|
Zhejiang Jianlong
Steels Industry Co., Ltd. |
71.44 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal
Representative and Chairman |
Zhang Zhixiang |
RECENT
DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
Beijing Huaxia Jianlong Mining Science &
Technology Co., Ltd. 28.56
Zhejiang Jianlong Steels Industry Co., Ltd. 71.44
Beijing Huaxia
Jianlong Mining Science & Technology Co., Ltd.
==================================================
Date of Registration: September 19, 2003
Registration No.: 110000006156839
Registered Capital: CNY 108,750,000
Zhejiang Jianlong
Steels Industry Co., Ltd.
==================================
Date of Registration: February 20, 2003
Registration No.: 330100000010252
Registered Capital: CNY 500,000,000
MANAGEMENT
Zhang Zhixiang, Legal
Representative and Chairman
--------------------------------------------------------------------------------
Ø
Gender: M
Ø
Nationality: China
Ø Qualification:
University
Ø Working experience
(s):
From 2001 to present, working in SC as legal
representative and chairman, and also working in Jilin Heng associated
Precision Casting Technology Co., Ltd. as legal representative
BUSINESS
OPERATION
SC’s registered business scope includes ironmaking,
steelmaking, rolling mill, manufacturing, processing and selling iron and steel
products; acquisition of scrap iron and steel; exporting its owned iron and
steel products, importing materials, instrument, machinery and equipment, parts
and technology needed for its production; manufacturing and selling active
lime, metallurgical charge.
SC is mainly engaged
in manufacturing and selling iron and steel products.
SC’s products
mainly include: iron and steel products
SC sources its materials 100% from domestic market, mainly Jilin. SC sells 65% of its products in domestic market, and 35% to overseas market.
The buying terms
of SC include Check, T/T and Credit of 30-60 days. The payment terms of SC
include T/T, L/C and Credit of 30-60 days.
Staff & Office:
--------------------------
SC is known
to have approx. 3,000 staff
at present.
SC owns an area as
its operating office & factory of approx. 600,000 sq. meters at the heading
address.
RELATED
COMPANY
SC is known to have a
subsidiary at present,
n
Jilin Heng Associated Precision Casting Technology Co., Ltd.
------------------------------------------
Date of Registration: March 5, 2010
Registration No.: 220284000086307
Registered Capital: CNY 1,130,000,000
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
Basic Bank:
Agricultural
Bank of China Jilin Branch Jinzhu Office
AC#:
283301048888887
FINANCIALS
Financial Summary
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Unit: CNY’000 |
As of Dec. 31, 2013 |
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Total assets |
22,648,133 |
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Total liabilities |
16,522,097 |
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Equities |
6,126,036 |
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Revenue |
11,858,943 |
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Profits |
115,185 |
Important Ratios
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As of Dec. 31, 2013 |
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*Liabilities to assets |
0.73 |
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*Net profit margin (%) |
0.97 |
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*Return on total assets (%) |
0.51 |
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* Revenue/Total assets |
0.52 |
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.
LIQUIDITY: FAIR
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 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.62.28 |
|
|
1 |
Rs.96.21 |
|
Euro |
1 |
Rs.70.60 |
INFORMATION DETAILS
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Analysis Done by
: |
DIV |
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Report Prepared
by : |
NIT |
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.