MIRA
INFORM REPORT
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Report No. : |
345369 |
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Report Date : |
23.10.2015 |
IDENTIFICATION DETAILS
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Name : |
HuaDian Heavy
Industries co., ltd. |
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Registered Office : |
9/F, Tower B, Huadian Industrial Park, No. 6 Auto Museum East Road, Fengtai District, Beijing 100070 Pr |
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Country : |
China |
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Financials (as on) : |
30.06.2015 (Consolidated) |
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Date of Incorporation : |
26.12.2008 |
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Com. Reg. No.: |
110000011554141 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject is
mainly engaged in engineering system design and EPC, and providing related
service. |
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No. of Employees : |
2,303 (Including Subsidiaries) |
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 – March 31, 2015
|
Country Name |
Previous Rating (31.12.2014) |
Current Rating (31.03.2015) |
|
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 and Address
HuaDian Heavy Industries co., ltd.
9/F, Tower B, huadian
industrial park, No. 6 Auto Museum East Road, Fengtai District, Beijing 100070
PR CHINA
TEL: 86 (0)
10-68466145 FAX: 86 (0)
10-63919195
EXECUTIVE SUMMARY
INCORPORATION DATE : dec. 26, 2008
REGISTRATION NO. : 110000011554141
REGISTERED LEGAL FORM : Shares limited
company
STAFF STRENGTH : 2,303 (including
subsidiaries)
REGISTERED CAPITAL : CNY 1,155,000,000
BUSINESS LINE :
design, construction contracting, service
TURNOVER : CNY 2,870,823,000
(Consolidated, JAN. 1 TO JUN. 30, 2015)
EQUITIES : CNY 3,613,171,000 (Consolidated, AS OF JUN. 30, 2015)
PAYMENT : AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly STABLE
OPERATIONAL TREND :
steady
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.3599 = 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 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 design, installation, commissioning and entrusted
production of heavy equipment, bulk material handling systems, plumbing system,
air-cooled systems, construction machinery, cranes and steel structure of large
and medium-sized thermal power, hydropower, wind power, and nuclear power,
coal, petroleum, chemical, natural gas, ports, transportation, municipal,
metallurgy, building materials, food industry; engineering design; construction
general contracting; professional contract; technical advice, technical
services; import and export of goods.
SC is mainly
engaged in engineering system design and EPC, and providing related service.
Mr. Sun Qingsong
has been legal representative and chairman of SC since 2010.
SC is known to
have approx. 2,303 (including
subsidiaries) employees at present, including 1,139 production staff, 71 sales staff,
433 technical staff, 46 financial staff, 200 administration staff and 414
project implementation staff.
SC
is currently operating at the above stated address, and this address houses its
operating office in Beijing. Detailed premise information is not available at
present.
http://www.hhi.com.cn/ The design is professional and the content is
well organized. At present it is in Chinese and English versions.
E-mail: hhi@hhi.com.cn
SC was listed in Shanghai Stock Exchange Market in 2014 with the stock
code 601226.
Changes of its
registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
2010-05-26 |
Legal
representative |
Bai Shaotong |
Present one |
|
2010-11-19 |
Registered
capital |
CNY 150,000,000 |
CNY 250,000,000 |
|
2011-04-22 |
Legal form |
one-person
limited liability company |
limited
liabilities company |
|
Registered
capital |
CNY 250,000,000 |
CNY 310,000,000 |
|
|
2011-07-26 |
Legal form |
limited
liabilities company |
Present one |
|
Company’s
name |
Huadian Heavy Industry Equipment Co., Ltd. |
Present one |
|
|
Registered
capital |
CNY 310,000,000 |
CNY 620,000,000 |
|
|
2015-01-27 |
Registered
capital |
CNY 620,000,000 |
CNY 770,000,000 |
|
2015-07-03 |
Registered
capital |
CNY 770,000,000 |
Present
Amount |
Tax Registration Certificate No.: 110106683552962
Organization Code: 683552962
For the past two years there is no record of litigation.
MAIN
SHAREHOLDERS: (As of June 30, 2015)
Name %
of Shareholding
China Huadian Engineering Co., Ltd. 63.04
Mianyang Technology City Industrial
Investment Fund (limited partnership) 6.49
Shenzhen Huixin Equity Investment Fund
Partnership Firm
(Limited Partnership) 2.34
Tianjin Bangtai Equity Investment Fund
Partnership (L.P.) 2.08
Switched Two of National Council for Social
Security Fund P.R.C. 1.95
China Life Insurance Company Limited -
Dividend - Individual
Dividend -005L-FH002 Shanghai 1.69
Essence Capital Co., Ltd. 1.64
Shenzhen Taichangrui Investment and
Development Co., Ltd.
(in Chinese pinyin) 1.3
Beijing She Er Investment Co., Ltd. (in
Chinese pinyin) 0.65
Maoming Xin Xing Shun Trading Co., Ltd. (in
Chinese pinyin) 0.65
Other shareholders 18.17
China
Huadian Engineering Co., Ltd.
---------------------------------------
China Huadian Engineering Co., Ltd. (CHEC in
abbreviation), an affiliated enterprise of China Huadian Corporation, plays an
important role in developing engineering technology industry. Under the guidance
of CHD’s overall development strategy, CHEC has become a large state owned
enterprise with competitive advantage in the core business of high-tech
products R&D and manufacturing, engineering design and EPC contracting,
energy technology research and service.
Incorporation Date : March 17, 1992
Registration No. : 100000000011498
Registered Legal Form :
One-Person Limited Liability Company
Legal representative : Sun Qingsong
Tel: 86 (0) 10- 63918789
Email: chec@chec.com.cn
l Chairman and legal
representative:
Mr. Sun Qingsong, born in 1960 with MBA Degree,
senior engineer. He is currently responsible for the overall management of SC.
Working Experience(s):
From 2010 to present Working in SC as
chairman and legal representative.
Also working in China Huadian Engineering
Co., Ltd., Huadian Distributed Energy Engineering & Technology Co., Ltd.
and Huadian Group Electric Power Construction Technology Economy Consulting
Centre as legal representative.
l Vice chairman:
Mr. Yang Yong, born in 1955 with junior college
education, senior engineer. He is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as vice
chairman.
Also working in China Huadian
Engineering Co., Ltd. as director.
l General Manager
and director:
Mr. Wang Rugui, senior engineer, born in
1963 with EMBA degree. He is currently responsible for the daily management of
SC.
Working Experience(s):
At present Working in SC as general
manager and director.
l Vice General
Managers:
Yan Ping
Hou Xuhua
Liu Tianjun
Etc.
l Directors:
Chen Lei
Ma Chunyuan
Zheng Xiaoming
Etc.
l Supervisors:
Hou Jiawei
Wang Peilin
Ma Yaofang
Etc.
SC is mainly engaged
in engineering system design and EPC, and providing related service.
SC’s businesses
mainly include:
Material Handling Engineering
Steel Structure Engineering
Thermal Engineering
Coal Utilization Engineering
Offshore Wind Power Engineering
With the engineering system design and EPC as the principal business and
the R&D and manufacturing of core products and relevant high-end products
and investment operations as the support, HHI is committed to providing the
clients with integrated solutions in terms of material handling engineering,
thermal power engineering, industrial noise treatment engineering, clean &
effective coal utilization engineering and offshore wind power engineering etc.
The Company’s business encompasses such fields as electricity, coal,
petrochemical, mining, metallurgy, port, water conservancy, building materials
and urban construction both at home and abroad.
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 Suppliers:
==============
V&M Dentschland GmbH
Gansu Western Heavy Industry Co., Ltd. of JISCO
CNR Lanzhou Locomotive Co., Ltd.
WYMAN GORDON LTD.
*Major Customers:
==============
China Huadian Corporation
Tangshan Port Group Co., Ltd.
Shanxi Lu'an Mining (Group) Co., Ltd.
Wanhua Chemical Group Co., Ltd.
|
TRADEMARKS & PATENTS |
|
Registration No. |
11176952 |
11176981 |
11176869 |
|
Registration Date |
2013-11-28 |
2013-11-28 |
2013-11-28 |
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Trademark Design |
|
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Huadian Distributed Energy Engineering & Technology Co., Ltd.
Huadian Group Electric Power Construction Technology Economy Consulting
Centre
Huadian Tendering Co., Ltd.
Beijing Huadian Xinyuan Technology Training Co., Ltd. (in Chinese pinyin)
Huadian Engineering Group Venture Capital Co.,
Ltd.
Etc.
SC is known to invest in the following companies:
Huadian
Caofeidian Heavy Equipment Co., Ltd.
Huadian
Heavy Machinery Co., Ltd.
Wuhan
Huadian Engineering Machinery Co., Ltd.
Henan
Huadian Jinyuan Piping Co., Ltd.
Branches:
Huadian
Heavy Industries Co., Ltd. Xinjiang Branch
Huadian
Heavy Industries Co., Ltd. Shanghai Branch
Huadian
Heavy Industries Co., Ltd. Tianjin Branch
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’s suppliers
declined to make any comments.
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 declined to
release its bank details.
Consolidated
Balance Sheet
Unit: CNY’000
|
|
As of Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
Cash & bank |
598,784 |
1,940,936 |
|
Notes receivable |
316,528 |
268,110 |
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Inventory |
3,665,934 |
3,112,809 |
|
Accounts receivable |
2,087,743 |
1,610,751 |
|
Advances to supplies |
263,184 |
361,067 |
|
Interest receivable |
5,429 |
0 |
|
Other Accounts receivable |
65,586 |
71,772 |
|
Other current assets |
614,065 |
52,862 |
|
|
------------------ |
------------------ |
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Current assets |
7,617,253 |
7,418,307 |
|
Fixed assets |
1,032,738 |
1,060,042 |
|
Projects under construction |
42,157 |
36,148 |
|
Long term investment |
0 |
0 |
|
Intangible assets |
211,231 |
212,958 |
|
Long-term deferred expense |
1,036 |
1,494 |
|
Deferred tax assets |
19,931 |
15,971 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
8,924,346 |
8,744,920 |
|
|
============= |
============= |
|
Short loans |
459,000 |
220,000 |
|
Notes payable |
265,850 |
460,281 |
|
Accounts payable |
2,856,460 |
2,526,765 |
|
Advances from customers |
984,533 |
1,186,630 |
|
Accrued Payroll |
5,632 |
5,582 |
|
Taxes payable |
33,392 |
14,467 |
|
Other Accounts payable |
77,509 |
99,015 |
|
Non-current liabilities due within one year |
111,822 |
147,335 |
|
Other current liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Current liabilities |
4,794,198 |
4,660,075 |
|
Long-term loans |
475,845 |
475,864 |
|
Deferred income |
41,132 |
44,159 |
|
Other liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total liabilities |
5,311,175 |
5,180,098 |
|
Equities |
3,613,171 |
3,564,822 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
8,924,346 |
8,744,920 |
|
|
============= |
============= |
Consolidated
Income Statement
Unit: CNY’000
|
|
Jan. 1 to Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
Turnover |
2,870,823 |
6,216,168 |
|
Cost of
goods sold |
2,397,158 |
5,272,804 |
|
Taxes and
additional of main operation |
11,700 |
25,513 |
|
Sales expense |
14,038 |
22,143 |
|
Management expense |
222,296 |
387,051 |
|
Finance expense |
24,712 |
42,043 |
|
Assets impairment loss |
29,142 |
41,630 |
|
Investment income |
8,768 |
0 |
|
Non-operating income |
7,091 |
7,406 |
|
Non-operating
expense |
19 |
72 |
|
Profit before tax |
187,617 |
432,318 |
|
Less: profit tax |
25,963 |
68,627 |
|
Profits |
161,654 |
363,691 |
Important
Ratios
=============
|
|
As of Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.59 |
1.59 |
|
*Quick ratio |
0.82 |
0.92 |
|
*Liabilities to assets |
0.60 |
0.59 |
|
*Net profit margin (%) |
5.63 |
5.85 |
|
*Return on total assets (%) |
1.81 |
4.16 |
|
*Inventory /Turnover ×365 |
/ |
183 days |
|
*Accounts receivable/Turnover ×365 |
/ |
95 days |
|
*Turnover/Total assets |
0.32 |
0.71 |
|
* Cost of goods sold/Turnover |
0.84 |
0.85 |
PROFITABILITY:
FAIRLY GOOD
l The turnover of SC
appears good in its line.
l SC’s net profit
margin is fairly good.
l SC’s return on total
assets is average.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level.
l
SC’s quick ratio is maintained in a normal level.
l
The inventory of SC appears large.
l
The accounts receivable of SC is maintained in an
average level.
l
SC’s short-term loan is average.
l
SC’s turnover is in a fair level, comparing with
the size of its total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is average.
l
The risk for SC to go bankrupt is average.
Overall
financial condition of the SC: Fairly Stable.
SC is considered large-sized in its line with fairly stable financial
conditions. The large amount of inventory could be a threat to SC’s financial
condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.64.89 |
|
|
1 |
Rs.100.39 |
|
Euro |
1 |
Rs.73.52 |
INFORMATION DETAILS
|
Analysis Done by
: |
KAR |
|
|
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|
Report Prepared
by : |
NIT |
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.