MIRA
INFORM REPORT
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Report No. : |
345370 |
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Report Date : |
19.10.2015 |
IDENTIFICATION DETAILS
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Name : |
DONGFANG
ELECTRIC CORPORATION LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
30.06.2015 |
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Date of Incorporation : |
28.12.1993 |
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Com. Reg. No.: |
510109000059366 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Manufacturing, selling, researching and developing universal
equipments, electric apparatus and equipments, nuclear power generation
equipments, wind power generation equipments, renewable energy power
generation equipments and spare parts; researching, developing, manufacturing
and selling industrial control and automation equipments; researching,
developing, manufacturing and selling environmental protection equipment (desulfurization, denitrification,
wastewater, solid waste), energy-saving equipment, petro-chemical
containers; researching, developing, manufacturing and selling instruments
and meters, general machinery; manufacturing and selling industrial gas;
power plant design, power station equipments technology development, sales
and service of the equipments; general contractor and subcontractors of
overseas power generation equipments, mechanical and electrical equipments,
complete sets of projects, and domestic international bidding projects;
export of the equipments and materials, and dispatching workers, which are needed for the above mentioned
overseas projects; import and export trade; business services; professional
and technical services; scientific and technological exchanges and services.
(with permit if needed) |
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No. of Employees : |
24,658 |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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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.
|
Source
: CIA |
Company name & address
DONGFANG ELECTRIC CORPORATION LIMITED
NO. 333 SHUHAN
ROAD, JINNIU DISTRICT, CHENGDU
SICHUAN
PROVINCE 610036 PR CHINA
TEL: 86 (0)
28-87583666
FAX: 86 (0)
28-87583551
EXECUTIVE SUMMARY
Date of Registration : dECember 28, 1993
REGISTRATION NO. : 510109000059366
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
SI
ZEFU (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 2,336,900,368
staff :
24,658
BUSINESS CATEGORY : r
& d & manufacturing & trading
REVENUE :
CNY 18,204,942,000 (FROM JAN. 1,
2015 TO JUN. 30, 2015)
EQUITIES :
CNY 23,718,144,000 (AS OF JUN. 30, 2015)
WEBSITE : www.dec-ltd.cn
E-MAIL :
dsb@dongfang.com
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly stable
OPERATIONAL TREND :
Steady
GENERAL REPUTATION : GOOD
EXCHANGE RATE :
CNY 6.32 = 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.: 510109000059366
on December 28, 1993.
SC’s Organization Code Certificate No.:
20511548-5
SC’s registered capital: CNY 2,336,900,368
SC’s paid-in capital: CNY 2,336,900,368
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
2007-12 |
Company Name |
Dongfang Electrical Machinery Company Limited |
Dongfang Electric Corporation Limited |
|
2009 |
Registered Capital |
CNY 882,000,000 |
CNY 1,001,930,000 |
|
2010 |
Registered Capital |
CNY 1,001,930,000 |
CNY 2,003,860,000 |
|
-- |
Registration No. |
5106001800189 |
510109000059366 |
|
2015-10-15 |
Registered Capital |
CNY 2,003,860,000 |
CNY 2,336,900,368 |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of Jun. 30, 2015) |
% of Shareholding |
|
Dongfang Electric Corporation |
41.34 |
|
HKSCC Nominees Limited |
14.47 |
|
Agricultural Bank of China- Wells Fargo Securities SOE Reform Index
Classification of Securities Investment Funds |
1.66 |
|
China Huarong Asset Management Co., Ltd. |
0.32 |
|
Gao Xiang |
0.24 |
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Agricultural Bank of China-Zhongrong Zhongzheng Topic Index classification Securities
Investment Fund |
0.22 |
|
China Merchants Securities Co., Ltd.-Anxin Zhongzheng opic Index classification
Securities Investment Fund |
0.21 |
|
Ge Hong |
0.18 |
|
Huaxia Bank Co., Ltd.-Huashang
Featured Quantify Hybrid Securities Investment Fund |
0.18 |
|
Hou Zhijiang |
0.17 |
|
Other Shareholders |
41.01 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Si Zefu |
|
CEO |
Wen Shugang |
|
Vice CEO |
Han Zhiqiao |
|
Gao Feng |
|
|
Chen Huan |
RECENT
DEVELOPMENT
SC is a listed company both in Hong Kong Exchanges with code of 1072.HK and
Shanghai Stock Exchange Market with the code of 600875.
SHAREHOLDER
CHART & BACKGROUND
Name %
of Shareholding
(As of Jun. 30, 2015)
----------------------------------
Dongfang Electric Corporation 41.34
HKSCC Nominees Limited 14.47
Agricultural Bank of China- Wells Fargo Securities SOE Reform Index
Classification of Securities Investment Funds 1.66
China Huarong Asset Management Co., Ltd. 0.32
Gao Xiang 0.24
Agricultural Bank of China-Zhongrong Zhongzheng Topic Index classification Securities Investment
Fund 0.22
China Merchants Securities Co., Ltd.-Anxin Zhongzheng opic Index
classification Securities Investment Fund 0.21
Ge Hong 0.18
Huaxia Bank Co., Ltd.-Huashang
Featured Quantify Hybrid Securities Investment Fund 0.18
Hou Zhijiang 0.17
Other Shareholders 41.01
Dongfang Electric Corporation
--------------------------------------------
Dongfang Electric Corporation (DEC) is established
in 1984. Now it is one of the largest enterprises in China engaging in the
manufactures of generating equipments and the contracts of generating station
projects, at the same time it is also confirmed by Central Party to be one of
the substantial state-owned enterprises relating to national security and
economic vital. By the end of 2007, the total asset of DEC has reached 48,000
million Yuan. It has been listed among the 225 largest international contractors.
Nowadays Dongfang Electric Corporation is capable of
producing the large thermal power generating units of 300MW, 600MW and 1000MW,
and water turbine generator sets of 400MW, 550MW and 700MW in batch quantity.
At the same time it can also produce the nuclear power units of 1000MW and wind
power generating set of 2.5MW. And other products of the DEC include gas
turbine, photovoltaic power generation units, tidal power generation units,
seawater desalination equipment and pressure vessels etc. For many years the
production of the DEC has been No.
Date of Registration: November 6, 1984
Registration No.: 100000000012275
Chief Executive : Si Zefu
Registered Capital: CNY 4,791,675,000
Address: No. 18, Xixin Street, Gaoxin West District, Chengdu,
Sichuan Province
Tel: 86 028- 87898111
Email: dongfang@dongfang.com
HKSCC Nominees Limited
---------------------------------------
CR No.: 0309729
Date of Registration: May 14, 1991
Company Status: Private
MANAGEMENT
Si Zefu, Legal
Representative and Chairman
---------------------------------------------------------------------
Gender: M
Age: 57
Qualification: Master Degree
Working experience (s):
From 1995 to 1998, worked in Dongfang Electric
Factory as vice factory director, worked in SC as vice general manager
From 1998 to 1999, worked in Deyang City of
Sichuan Province as vice mayor
From 1999 to 2003, worked in SC as general manager and vice chairman
From 2003 to 2008, worked in Dongfang Electric
Corporation as general manager and vice chairman
From 2007 to present, working in SC as legal representative and chairman
Also working in Dongfang Electric Corporation
as legal representative and chairman
Wen Shugang, CEO
-------------------------------------
Gender: M
Age: 52
Qualification: Doctor Degree
Working experience (s):
From 2007 to present, working in SC as CEO
Vice CEO
------------
Han Zhiqiao
Gao Feng
Chen Huan
BUSINESS
OPERATION
SC’s registered business scope includes manufacturing,
selling, researching and developing universal equipments, electric apparatus
and equipments, nuclear power generation equipments, wind power generation
equipments, renewable energy power generation equipments and spare parts;
researching, developing, manufacturing and selling industrial control and
automation equipments; researching, developing, manufacturing and selling
environmental protection equipment (desulfurization, denitrification, wastewater, solid waste), energy-saving
equipment, petro-chemical containers; researching,
developing, manufacturing and selling instruments and meters, general
machinery; manufacturing and selling industrial gas; power plant design, power
station equipments technology development, sales and service of the equipments;
general contractor and subcontractors of overseas power generation equipments,
mechanical and electrical equipments, complete sets of projects, and domestic
international bidding projects; export of the equipments and materials, and
dispatching workers, which are needed
for the above mentioned overseas projects; import and export trade; business
services; professional and technical services; scientific and technological
exchanges and services. (with permit if needed)
SC is mainly engaged in researching, developing, manufacturing and
selling power generation equipment.
SC’s products mainly include: gas power equipment, thermal power equipment,
hydro power equipment, nuclear power equipment, wind power equipment, etc.
SC sources its materials 80% from domestic market, and 20% from overseas
market. SC sells 70% of its products in domestic market, and 30% 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 T/T, L/C and Credit of 30-60 days.
*Major Customers:
==============
Special Metals Welding Products Co.
Bgr Energy Systems Limited
Staff &
Office:
--------------------------
SC is known to have approx. 24,658
staff at present.
SC owns an area as its operating office and factory, but the detailed
information is unknown.
RELATED
COMPANY
SC is known to
invest in the following companies:
Dongfang Electric Corporation Dongfang
Gas Turbine Co., Ltd.
Dongfang Electric Corporation Dongfang
Electrical Machinery Co., Ltd.
Dongfang Electric Corporation Dongfang
Boiler Co., Ltd.
Dongfang (Guangzhou) Heavy Machinery Co., Ltd.
Dongfang Electric (Wuhan)
Nuclear Equipment Company Limited
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
The bank information of SC is not filed in SAIC.
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
As of Jun. 30,
2015 |
|
17,822,818 |
16,307,395 |
|
|
Accounts receivable |
17,698,467 |
16,268,079 |
|
Notes receivable |
2,626,993 |
3,414,738 |
|
Advances to suppliers |
4,210,529 |
4,009,446 |
|
Interest receivable |
153,964 |
242,228 |
|
Other receivable |
282,414 |
337,461 |
|
Inventory |
29,640,990 |
29,900,149 |
|
Non-current assets within one year |
0 |
0 |
|
Other current assets |
56,550 |
14,612 |
|
|
------------------ |
------------------ |
|
Current assets |
72,492,725 |
70,494,108 |
|
Long-term investments |
974,911 |
1,000,141 |
|
Real estate investment |
74,062 |
72,220 |
|
Fixed assets |
8,537,914 |
8,121,146 |
|
Construction in progress |
818,329 |
866,511 |
|
Project materials |
113 |
113 |
|
Intangible assets |
988,753 |
959,477 |
|
Goodwill |
0 |
0 |
|
Long-term deferred expense |
475 |
401 |
|
Deferred income tax assets |
1,331,043 |
1,344,361 |
|
Other non-current assets |
11,844 |
15,347 |
|
|
------------------ |
------------------ |
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Total assets |
85,230,169 |
82,873,825 |
|
|
============= |
============= |
|
Short-term loans |
2,534,000 |
2,542,000 |
|
Notes payable |
5,275,895 |
4,663,092 |
|
Accounts payable |
15,893,241 |
18,237,343 |
|
Payroll payable |
339,885 |
359,926 |
|
Taxes payable |
-172,897 |
-128,214 |
|
Advances from clients |
33,384,928 |
29,083,228 |
|
Dividends payable |
3,143 |
212,985 |
|
Other payable |
1,738,315 |
1,756,843 |
|
Other current liabilities |
3,398,722 |
126,134 |
|
|
------------------ |
------------------ |
|
Current liabilities |
62,395,232 |
56,853,337 |
|
Non-current liabilities |
2,365,671 |
2,302,344 |
|
|
------------------ |
------------------ |
|
Total liabilities |
64,760,903 |
59,155,681 |
|
Equities |
20,469,266 |
23,718,144 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
85,230,169 |
82,873,825 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2014 |
From Jan. 1,
2015 to Jun. 30, 2015 |
|
Revenue |
39,036,165 |
18,204,942 |
|
Cost of sales |
32,495,806 |
16,035,352 |
|
Taxes and surcharges |
237,862 |
146,127 |
|
Sales expense |
891,929 |
344,053 |
|
Management expense |
3,609,660 |
1,445,572 |
|
Finance expense |
-181,277 |
-92,121 |
|
Asset impairment loss |
901,224 |
117,786 |
|
Investment income |
212,026 |
53,753 |
|
Non-operating income |
204,916 |
47,503 |
|
Non-operating expense |
28,173 |
47,942 |
|
Profit before tax |
1,502,342 |
261,379 |
|
Less: profit tax |
181,725 |
73,842 |
|
Profits |
1,320,617 |
187,537 |
Important Ratios
=============
|
|
As of Dec. 31,
2014 |
As of Jun. 30,
2015 |
|
*Current ratio |
1.16 |
1.24 |
|
*Quick ratio |
0.69 |
0.71 |
|
*Liabilities to assets |
0.76 |
0.71 |
|
*Net profit margin (%) |
3.38 |
1.03 |
|
*Return on total assets (%) |
1.55 |
0.23 |
|
*Inventory / Revenue ×365/180 |
278 days |
296 days |
|
*Accounts receivable / Revenue ×365/180 |
166 days |
161 days |
|
*Revenue / Total assets |
0.46 |
0.22 |
|
*Cost of sales / Revenue |
0.83 |
0.88 |
FINANCIAL
COMMENTS
PROFITABILITY:
AVERAGE
The revenue of SC appears fairly 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 revenue.
LIQUIDITY: FAIR
The current ratio of SC is maintained in a normal level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears large.
The accounts receivable of SC appears large.
SC’s short-term loans are in an average level
SC’s revenue is in a fair level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY
GOOD
The debt ratio of SC is average.
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Stable.
CONCLUSIONS
SC is considered large-sized in its line with fairly stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.97 |
|
|
1 |
Rs.100.55 |
|
Euro |
1 |
Rs.73.99 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
|
|
Report Prepared
by : |
TPT |
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.