MIRA INFORM REPORT
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Report No. : |
341625 |
|
Report Date : |
19.09.2015 |
IDENTIFICATION DETAILS
|
Name : |
Taiyuan Heavy Industry Co., Ltd. |
|
|
|
|
Registered Office : |
(No. 53, Yuhe Road,
Wanbailin District) Hi-Tech Industrial Development Zone, Taiyuan, Shanxi
Province, 030024 Pr |
|
|
|
|
Country : |
China |
|
|
|
|
Financials (as on) : |
30.06.2015 |
|
|
|
|
Date of Incorporation : |
06.07.1998 |
|
|
|
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Com. Reg. No.: |
140000100064225 |
|
|
|
|
Legal Form : |
Shares Limited Company |
|
|
|
|
Line of Business : |
Subject is
engaged in manufacturing and selling heavy machinery products, and providing
related service products mainly include: Mining Equipment,
Lifting Equipment, Rolling Equipment, Forging Equipment, Coke Oven Equipment,
Wind Turbine, Coal Chemical Equipment, Wheels & Axles, Gearboxes,
Forgings & Castings, Special Equipment, Marine Equipment, EPC Project |
|
|
|
|
No. of Employee : |
8,492 (Including
Subsidiaries) |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Good |
|
Payment Behaviour : |
No complaints |
|
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 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
Low |
A2 |
|
Moderate |
B1 |
|
High |
B2 |
|
Very High |
C1 |
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Restricted |
C2 |
|
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
Taiyuan Heavy Industry Co., Ltd.
(No. 53, Yuhe Road, Wanbailin District)
Hi-tech Industrial Development Zone, Taiyuan, Shanxi Province, 030024 PR CHINA
TEL:
86 (0) 351-6361155 FAX: 86 (0) 351-6362554
EXECUTIVE
SUMMARY
INCORPORATION
DATE : July 6, 1998
REGISTRATION
NO. : 140000100064225
REGISTERED
LEGAL FORM : SHARES LIMITED COMPANY
CHIEF
EXECUTIVE : Mr. Wang
Chuangmin (CHAIRMAN)
STAFF
STRENGTH : 8,492
(Including subsidiaries)
REGISTERED
CAPITAL :
CNY 2,423,955,000
BUSINESS
LINE :
MANUFACTURING, TRADING, SERVICE
TURNOVER : CNY 2,984,061,000
(Consolidated, JAN. 1 TO JUN. 30,
2015)
EQUITIES : CNY
5,423,319,000 (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 6.365
= usd
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 co. at Shanxi Provincial Administration for industry &
commerce (AIC - the official body of issuing and renewing business license) on
July 6, 1998.
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 manufacturing and selling train-axis, metallurgy, steel
rolling, forging, lifting, non-standard equipment, pressurized gasifier,
pressure vessels, industrial & mining parts, oil film bearings, precision
forgings, structural parts, gears and automotive gearbox; electromechanical
technology service; installation, commissioning, repair, transformation of
machinery and equipment; exporting self-made products and importing the needed
machinery and equipment, spare parts, raw materials (excluding the items
prohibited or limited by the country), selling excavation equipment, steel wheel
products. International freight forwarding; production, sales, technical
services of ingots, castings, forgings, heat treatment parts, molding,
packaging, casting equipment, casting materials; technical service of
industrial furnaces; technology consulting services of casting, forging, heat
treatment and smelting; comprehensive technology development services; computer
application and software development; contracting overseas and export of
self-made equipment installation
engineering and domestic international bidding projects; selling equipment and
materials which needed for the overseas projects; mine excavation and
transportation equipment, coking equipment, pipe equipment, wind power
generation equipment and spare parts; tunnel machinery, port machinery;
gearbox; design, manufacture, installation and sales of electrical automation
equipment. Road trucking; contracting foreign projects which adapt to its
strength, size and performance; dispatching labor abroad that required in the
above overseas projects.
SC is mainly
engaged in manufacturing and selling heavy machinery products, and providing
related service.
Mr. Wang Chuangmin
is legal representative and chairman of SC at present.
SC is known to
have approx. 8,492 (including subsidiaries) employees at present,
including 5,086 production staff, 464 sales staff, 1,142 technicians, 168
financial staff and 1,632 administrative staff.
SC is currently
operating at the above stated address, and this address houses its operating
office and factory in the development zone of Taiyuan. The detailed information
of the premise is unspecified.
http://www.tyhi.com.cn/ The design is
professional and the content is well organized. At present it is in both
Chinese and English versions.
Email: info@tyhi.com.cn
SC is a listed company in Shanghai Stock Exchange Market with the code of
600169 on September 4, 1998.
Changes of its registered information are as follows:
|
Date of change |
Item |
Before the change |
After the change |
|
Unknown |
Legal representative |
Yue Puyu 岳普煜 |
Present one |
Qualifications:
=============
Having passed ISO9001, ISO14001 and OHSMS certifications;
Train Wheels & Axles have passed ARR and EC certifications;
Castings & forgings have passed certificate Issued by LR, Certificate
Issued by ABS and Works Approval Issued by CCS;
Pressure vessels have obtained the Design & Manufacture Approval for
Special Equipment;
TYHI is the national first-class metrological test & measurement unit.
On August 12 of 2011, SC was
listed as AA Enterprise by Taiyuan Custom.
On August 15 of 2011, SC was listed as A
Level Tax Payer of Yr2010 by Shanxi Provincial Tax Bureau.
Etc.
State Tax Registration Certificate No.: 140114701013306
Local Tax Registration Certificate No.: 140105701013306
Organization Code: 70101330-6
See below for SC as
executive party (defendant).
|
Executed Party |
SC |
|
Court |
Jiangyin People's
Court |
|
Date of Case |
2015-08-28 |
|
Case Number |
(2015) 04872 |
|
Claim Amount |
RMB 750,000 |
|
Executed Party |
SC |
|
Court |
Foshan Nanhai
District People's Court |
|
Date of Case |
2015-08-11 |
|
Case Number |
(2015) 00336 |
|
Claim Amount |
RMB 3,275,490.8 |
|
Executed Party |
SC |
|
Court |
Taiyuan Wanbailin
District People's Court |
|
Date of Case |
2015-05-11 |
|
Case Number |
(2015) 00291 |
|
Claim Amount |
RMB 430,000 |
Etc.
Remark: Due to the lack of information, we are
unable to provide the cause of action, judgment or other information.
MAIN SHAREHOLDERS: (as of Jun. 30, 2015)
Name
%
of Shareholding
Taiyuan Heavy Machinery
(Group) Manufacturing Co., Ltd. 27.34
Taiyuan Heavy
Machinery Group Co., Ltd. 8.19
Shanxi Province
Economic and Trade Investment
Holding Group Co.,
Ltd. 1.35
Henan Province
Zhaoteng Investment Co., Ltd. 0.77
Chang'an Fund
Company - Agricultural Bank of
China – Chang’an
International Trust Co., Ltd. 0.76
Wang Ze 0.65
China Merchants
Bank Co., Ltd. – Penghua
CSI High-Speed
Railway Industry Index
Classification
Securities Investment Fund 0.61
Li Dongyun 0.55
Wang Jun 0.27
Chen Huaixiang 0.25
Other shareholders 59.26
Taiyuan Heavy
Machinery (Group) Manufacturing Co., Ltd.
===========================================
Registration no.:
140000100094815
Registered capital:
CNY 1,049,730,000
Legal
representative: Wang Chuangmin
Incorporation date:
2001-09-26
Taiyuan Heavy
Machinery Group Co., Ltd.
=================================
Registration no.:
140000100052457
Registered capital:
CNY 1,295,276,000
Legal
representative: Wang Chuangmin
Incorporation date:
1980-08-15
Tel: 0351-6360028
Fax: 0351-6360527
Chairman and Legal Representative:
Mr. Wang Chuangmin,
born in 1962 with master’s degree, senior engineer. He is currently responsible
for the overall management of SC.
Working Experience(s):
At present Working in SC as chairman
and legal representative.
Also working in
Taiyuan Heavy Machinery Group Co., Ltd., Taiyuan Heavy Machinery (Group)
Manufacturing Co., Ltd., Taiyuan Heavy Machinery Group Yuci Hydraulic Industry
Co., Ltd., etc. as legal representative.
Vice Chairman:
Mr. Zhang Yuniu,
born in 1956 with university 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
Taiyuan Heavy Machinery (Group) Manufacturing Co., Ltd. as director.
Vice Chairman:
Mr. Wang Jisheng,
born in 1958 with master’s degree, 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
Taiyuan Heavy Machinery Group Machinery Equipment Technology Development Co.,
Ltd. as legal representative.
Director and General Manager:
Mr. Fan Weimin,
born in 1963 with university education, senior engineer. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as director
and general manager.
Also working in
Taiyuan Heavy Industry Engineering Technology Co., Ltd. and Taiyuan Heavy
Industry Railway Transit Equipment Co., Ltd. as legal representative.
Vice general managers:
Li Fukui
Li Yingku
Cao Jisheng
Directors:
Zhang Zhide
Jie Zhihu
Li Yumin
Etc.
Supervisors:
Ding Yongping
Shen Zhiyuan
Luo Aimin
Etc.
SC is mainly
engaged in manufacturing and selling heavy machinery products, and providing
related service.
SC’s products
mainly include:
Mining Equipment
Lifting Equipment
Rolling Equipment
Forging Equipment
Coke Oven Equipment
Wind Turbine
Coal Chemical
Equipment
Wheels & Axles
Gearboxes
Forgings &
Castings
Special Equipment
Marine Equipment
EPC Project
SC sources its materials
90% from domestic market, and 10% from overseas market. SC sells 72% of its
products in domestic market, and 28% 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 refused to
release its main suppliers and clients.
Taiyuan Heavy
Machinery Group Coal Machinery Co., Ltd.
Taiyuan Heavy
Machinery Group Yuci Hydraulic Industry Co., Ltd.
Beijing Taiyuan
Heavy Machinery Equipment Co., Ltd. (literal translation)
Taiyuan Heavy
Machinery Group Machinery Equipment Technology Development Co., Ltd.
Etc.
SC is known to invest in the following
companies:
Taiyuan Heavy Industry
Engineering Technology Co., Ltd.
Taiyuan Heavy
Industry Railway Transit Equipment Co., Ltd.
Taiyuan Heavy
(Chayouzhongqi) New Energy Industrial Co., Ltd.
Taiyuan Heavy
Industry (Tianjin) Binhai Heavy Machinery Co., Ltd.
CEC Crane
Engineering and Consulting GmbH
Taiyuan Heavy
Industry (India) Private Limited
Etc.
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 management
declined to release its bank details.
Consolidated Balance Sheet
Unit: CNY’000
|
|
As of Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
Cash & bank |
1,749,790 |
2,214,795 |
|
Inventory |
7,402,467 |
6,663,087 |
|
Accounts
receivable |
8,207,637 |
8,853,692 |
|
Notes receivable |
434,635 |
642,854 |
|
Advances to
supplies |
1,538,352 |
1,594,772 |
|
Other receivables |
188,626 |
147,139 |
|
Other current
assets |
187,960 |
148,836 |
|
|
------------------ |
------------------ |
|
Current assets |
19,709,467 |
20,265,175 |
|
Fixed assets net
value |
5,089,282 |
5,125,979 |
|
Projects under
construction |
1,604,142 |
1,584,813 |
|
Long-term
investments |
4,672 |
0 |
|
Intangible assets |
506,941 |
512,362 |
|
Development
expenditure |
17,642 |
0 |
|
Deferred tax
assets |
69,965 |
83,195 |
|
Other assets |
69,790 |
29,189 |
|
|
------------------ |
------------------ |
|
Total assets |
27,071,901 |
27,600,713 |
|
|
============= |
============= |
|
Short loans |
4,791,016 |
3,601,206 |
|
Notes payable |
1,148,417 |
1,893,652 |
|
Accounts payable |
8,291,814 |
8,789,742 |
|
Advances from
clients |
945,789 |
568,464 |
|
Taxes payable |
78,151 |
89,484 |
|
Accrued payroll |
142,057 |
106,569 |
|
Interest payable |
67,019 |
136,169 |
|
Dividend payable |
327 |
327 |
|
Other Accounts
payable |
199,876 |
177,287 |
|
Non-current
liabilities due within one year |
1,133,397 |
918,421 |
|
Other current
liabilities |
1,000,680 |
2,034,034 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
17,798,543 |
18,315,355 |
|
Long term
liabilities |
3,850,039 |
3,869,101 |
|
|
------------------ |
------------------ |
|
Total liabilities |
21,648,582 |
22,184,456 |
|
Shareholders
equities |
5,423,319 |
5,416,257 |
|
|
------------------ |
------------------ |
|
Total liabilities
& equities |
27,071,901 |
27,600,713 |
|
|
============= |
============= |
Consolidated Income Statement
Unit: CNY’000
|
|
Jan. 1 to Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
Turnover |
2,984,061 |
9,023,322 |
|
Cost of goods
sold |
2,447,118 |
7,624,380 |
|
Taxes and
additional of main operation |
2,819 |
4,568 |
|
Sales expense |
144,575 |
340,103 |
|
Management
expense |
276,244 |
563,341 |
|
Finance expense |
224,139 |
430,343 |
|
Asset impairment
loss |
-90,088 |
138,846 |
|
Non-operating
income |
54,167 |
105,251 |
|
Non-operating
expense |
1,068 |
6,656 |
|
Operation Profit |
32,353 |
20,336 |
|
Less: profit tax |
25,020 |
-12,890 |
|
Net profit |
7,333 |
33,226 |
Important Ratios
=============
|
|
As of Jun. 30, 2015 |
As of Dec. 31, 2014 |
|
*Current ratio |
1.11 |
1.11 |
|
*Quick ratio |
0.69 |
0.74 |
|
*Liabilities to
assets |
0.80 |
0.80 |
|
*Net profit
margin (%) |
0.25 |
0.37 |
|
*Return on total
assets (%) |
0.03 |
0.12 |
|
*Inventory
/Turnover ×365 |
/ |
270 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
359 days |
|
*Turnover/Total
assets |
0.11 |
0.33 |
|
* Cost of goods
sold/Turnover |
0.82 |
0.84 |
PROFITABILITY: FAIRLY GOOD
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 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
loan appears fairly large.
SC’s turnover is in
a poor level, comparing with the size of its total assets.
LEVERAGE: AVERAGE
The debt ratio of
SC is fairly high.
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 large amount of inventory, accounts receivable and short-term loan could be a threat to SC’s financial condition.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.65.95 |
|
|
1 |
Rs.102.75 |
|
Euro |
1 |
Rs.75.13 |
INFORMATION DETAILS
|
Analysis Done by
: |
DIV |
|
|
|
|
Report Prepared
by : |
SDA |
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.