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MIRA
INFORM REPORT
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Report No. : |
512553 |
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Report Date : |
01.06.2018 |
IDENTIFICATION DETAILS
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Name : |
MAANSHAN IRON & STEEL COMPANY LIMITED |
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Registered Office : |
No. 8 Jiuhua West Road, Maanshan, Anhui
Province 243003 Pr |
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Country : |
China |
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Financials (as on) : |
31.03.2018 |
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Date of Incorporation : |
01.09.1993 |
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Unified Social
Credit Code : |
91340000610400837Y |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
Subject registered business scope includes ferrous metal smelting and
rolling processing; manufacturing and selling coke and coking coal products,
refractory materials, power, and gas; wharf, warehouse, transportation,
trade, steel and other related business; extended processing of steel
products; manufacturing and selling metal products; manufacturing and
installing steel structure and equipment; auto repair and scrap car recycling
and dismantling; housing construction and civil engineering; construction and
installation, building decoration; technology, consultation, and labor
service. |
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No. of Employees : |
30,236 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Status : |
Excellent |
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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
|
Country Name |
Previous
Rating (30.09.2017) |
Current Rating (31.12.2017) |
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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 Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
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. China has implemented reforms in a gradualist fashion, resulting in efficiency gains that have contributed to a more than tenfold increase in GDP since 1978. Reforms began with the phaseout 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 continues to pursue an industrial policy, state support of key sectors, and a restrictive investment regime. Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2016 stood as the largest economy in the world, surpassing the US in 2014 for the first time in modern history. China became the world's largest exporter in 2010, and the largest trading nation in 2013. Still, China's per capita income is below the world average.
After keeping its currency tightly linked to the US dollar for years, China in July 2005 moved to an exchange rate system that references a basket of currencies. From mid-2005 to late 2008, the renminbi appreciated more than 20% against the US dollar, but the exchange rate remained virtually pegged to the dollar from the onset of the global financial crisis until June 2010, when Beijing announced it would allow a resumption of gradual liberalization. From 2013 until early 2015, the renminbi (RMB) appreciated roughly 2% against the dollar, but the exchange rate fell 13% from mid-2015 until end-2016 amid strong capital outflows in part stemming from the August 2015 official devaluation; in 2017 the RMB resumed appreciating against the dollar – roughly 7% from end-of-2016 to end-of-2017. From 2013 to 2017, China had one of the fastest growing economies in the world, averaging slightly more than 7% real growth per year. In 2015, the People’s Bank of China announced it would continue to carefully push for full convertibility of the renminbi, after the currency was accepted as part of the IMF’s special drawing rights basket. However, since late 2015 the Chinese Government has strengthened capital controls and oversight of overseas investments to better manage the exchange rate and maintain financial stability.
The Chinese Government faces numerous economic challenges including: (a) reducing its high domestic savings rate and correspondingly low domestic household consumption; (b) managing its high corporate debt burden to maintain financial stability; (c) controlling off-balance sheet local government debt used to finance infrastructure stimulus; (d) facilitating higher-wage job opportunities for the aspiring middle class, including rural migrants and college graduates, while maintaining competitiveness; (e) dampening speculative investment in the real estate sector without sharply slowing the economy; (f) reducing industrial overcapacity; and (g) raising productivity growth rates through the more efficient allocation of capital and state-support for innovation. Economic development has progressed further in coastal provinces than in the interior, and by 2016 more than 169.3 million migrant workers and their dependents had relocated to urban areas to find work. One consequence of China’s population control policy known as the “one-child policy” - which was relaxed in 2016 to permit all families to have two children - 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 urbanization. The Chinese Government is seeking to add energy production capacity from sources other than coal and oil, focusing on natural gas, nuclear, and clean energy development. In 2016, China ratified the Paris Agreement, a multilateral agreement to combat climate change, and committed to peak its carbon dioxide emissions between 2025 and 2030.
The government's 13th Five-Year Plan, unveiled in March 2016, emphasizes the need to increase innovation and boost domestic consumption to make the economy less dependent on government investment, exports, and heavy industry. However, China has made more progress on subsidizing innovation than rebalancing the economy. Beijing has committed to giving the market a more decisive role in allocating resources, but the Chinese Government’s policies continue to favor state-owned enterprises and emphasize stability. Chinese leaders in 2010 pledged to double China’s GDP by 2020, and the 13th Five Year Plan includes annual economic growth targets of at least 6.5% through 2020 to achieve that goal. 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. Chinese leaders also have undermined some market-oriented reforms by reaffirming the “dominant” role of the state in the economy, a stance that threatens to discourage private initiative and make the economy less efficient over time. The slight acceleration in economic growth in 2017—the first such uptick since 2010—gives Beijing more latitude to pursue its economic reforms, focusing on financial sector deleveraging and its Supply-Side Structural Reform agenda, first announced in late 2015.
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Source
: CIA |
Company name & address
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COMPANY NAME |
MAANSHAN IRON & STEEL COMPANY LIMITED |
|
CURRENT ADDRESS/ REGISTERED
ADDRESS |
NO. 8 JIUHUA WEST ROAD, MAANSHAN, ANHUI
PROVINCE 243003 PR CHINA |
|
TEL. NO. |
86 (0) 555-2888158 |
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FAX NO. |
86 (0) 555-2887284 |
EXECUTIVE SUMMARY
Date of Registration : SEPTEMBER 1, 1993
UNIFIED SOCIAL CREDIT CODE : 91340000610400837Y
LEGAL FORM : SHARES LIMITED
COMPANY
CHIEF EXECUTIVE :
DING YI (LEGAL REPRESENTATIVE)
REGISTERED CAPITAL : CNY 7,700,681,186
staff :
30,236
BUSINESS CATEGORY : manufacturing & trading
REVENUE :
CNY 18,307,871,000 (CONSOLIDATED, JAN. 1, 2018 TO MAR. 31,
2018)
EQUITIES :
CNY 28,860,718,000 (CONSOLIDATED, AS OF MAR. 31, 2018)
WEBSITE : www.magang.com.hk
E-MAIL : mggfdms@magang.com.cn
PAYMENT :
Regular
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : FAIRLY STEADY
GENERAL REPUTATION : fairly good
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 Unified Social Credit Code: 91340000610400837Y.
SC’s registered capital: CNY 7,700,681,186
SC’s paid-in capital: CNY 7,700,681,186
Registration Change Record:-
|
Date |
Change of Contents |
Before the change |
After the change |
|
-- |
Registration No. |
000970 |
340000400002545 |
|
-- |
Registration No./ Unified Social Credit Code |
340000400002545 |
91340000610400837Y |
Current Co search indicates SC’s shareholders & chief executives are
as follows:-
|
Name of Shareholder (s) (As of March 31, 2018) |
% of Shareholding |
|
Magang (Group) Holding
Co., Ltd. |
45.54 |
|
HKSCC Nominees Limited |
22.28 |
|
Central Huijin Asset Management Co., Ltd. |
1.85 |
|
Haitong Securities Co., Ltd. |
0.52 |
|
Beijing Haoqing Fortune Investment Management Co., Ltd.-Haoqing Value Steady
No. 8 Investment Fund |
0.37 |
|
China Galaxy Securities Co., Ltd. |
0.34 |
|
Hu Zhongxiang |
0.28 |
|
Hong Kong Securities
Clearing Company Limited |
0.25 |
|
Li Xiaozhong |
0.21 |
|
Agricultural Bank of China
Co., Ltd.-CSI 500 Trading Open Index Securities Investment Fund |
0.2 |
|
Other Shareholders |
28.16 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative and Chairman |
Ding Yi |
|
General Manager and Director |
Qian Haifan |
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Director |
Yang Yada |
|
Su Shihuai |
|
|
Qin Tongzhou |
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|
Ren Tianbao |
|
|
Liu Fangduan |
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|
Supervisor |
Yan Taixia |
|
Su Yong |
|
|
Zhang Xiaofeng |
|
|
Fang Jinyong |
|
|
Wang Zhenhua |
RECENT DEVELOPMENT
SC is a listed company in Shanghai Stock Exchange with the code of
600808.
SC has been endorsed by the registered BS standard in Hong Kong.
Hot-rolled reinforcing steel and hot-rolled wire rods have been endorsed by the
quality control system certification and product certification of the UK
Certification Authority for Reinforcing Steels (CARES). Wheel products are
bestowed the honor of “Famous Brand of China”. The production quality assurance
system for train wheels is accredited with authoritative certifications
including the ISO 9000:2000 quality system and the AAR issued by the North
American Railway Committee.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
(As of March 31, 2018)
-----------------------------
Magang (Group) Holding Co., Ltd. 45.54
HKSCC Nominees Limited 22.28
Central Huijin Asset Management Co., Ltd. 1.85
Haitong Securities Co., Ltd. 0.52
Beijing Haoqing Fortune Investment Management Co., Ltd.-Haoqing Value
Steady No. 8 Investment Fund
0.37
China Galaxy Securities Co., Ltd. 0.34
Hu Zhongxiang 0.28
Hong Kong Securities Clearing Company Limited 0.25
Li Xiaozhong 0.21
Agricultural Bank of China Co., Ltd.-CSI 500 Trading Open Index
Securities Investment Fund
0.2
Other Shareholders 28.16
Magang (Group) Holding Co., Ltd.
-----------------------------------------------
Unified Social Credit Code: 91340500150509144U
Registered Capital: CNY 6,298,290,000
Legal Representative: Wei Yao
Magang Group has been honored national "May 1" labor
certificates, "Four-good" advanced collective leadership team among
state-owned enterprises, national "observe contracts and keep
promise" enterprise, national outstanding contributions awards for the
training of skilled personnel, national model enterprise of harmonious labor
relations and national quality and efficiency of advanced enterprise, etc.
Address: No. 8, Jiuhuaxi Road, Maanshan City, Anhui Province
Telephone: 86 (0) 555-2883492
Fax: 86 (0) 555 2884350
Web: www.magang.com.cn
HKSCC Nominees Limited
---------------------------------------
CR.: 0309729
Date of Registration: May 14, 1991
Legal Form: Private
Status: Live
Central Huijin Asset Management Co., Ltd
----------------------------------------------------------
Unified Social Credit Code: 91110101MA001QTAX2
Registered Capital: CNY 5,000,000,000
Legal Representative: Zhang Hong'an
Haitong Securities Co., Ltd.
----------------------------------------
Unified Social Credit Code: 9131000013220921X6
Registered Capital: CNY 11,501,700,000
Legal Representative: Zhou Jie
China Galaxy Securities Co., Ltd.
-----------------------------------------------
Unified Social Credit Code: 91110000710934537G
Registered Capital: CNY 10,137,258,757
Legal Representative: Chen Gongyan
Hong Kong Securities Clearing Company Limited
-------------------------------------------------------------------
CR.: 0251622
Date of Registration: May 5, 1989
Legal Form: Private
Status: Live
MANAGEMENT
Ding Yi, Legal
Representative and Chairman
------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as legal representative and chairman
Qian Haifan,
General Manager and Director
----------------------------------------------------------------------
Gender: M
Qualification: University
Working experience (s):
At present, working in SC as general manager and director
Director
-----------
Yang Yada
Su Shihuai
Qin Tongzhou
Ren Tianbao
Liu Fangduan
Supervisor
--------------
Yan Taixia
Su Yong
Zhang Xiaofeng
Fang Jinyong
Wang Zhenhua
BUSINESS OPERATION
SC’s registered business scope includes ferrous metal smelting and
rolling processing; manufacturing and selling coke and coking coal products,
refractory materials, power, and gas; wharf, warehouse, transportation, trade,
steel and other related business; extended processing of steel products;
manufacturing and selling metal products; manufacturing and installing steel
structure and equipment; auto repair and scrap car recycling and dismantling;
housing construction and civil engineering; construction and installation,
building decoration; technology, consultation, and labor service.
SC is mainly engaged in manufacturing and selling steel products.
SC’s products mainly include: thin plates and medium plates, H-shaped
steel and common medium-shaped steel, high-speed wire rod materials and
hot-rolled reinforcing steel, etc.
SC sources its materials 70% from domestic market, and 30% from overseas
market. SC sells 40% of its products in domestic market, and 60% to overseas
market, mainly Southeast Asia, etc.
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.
*Major Customers*
----------------------
Bnp Paribas
Alstom Train Life Services
Staff &
Office:
--------------------------
SC is known to have approx. 30,236
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,
--------------------------------------------------------------
Ma Steel International Trade & Economic Corporation
Magang Group Design & Research Institute Co., Ltd.
Anhui Ma Steel Jiahua New Type Building Materials Co., Ltd.
Magang (Wuhu) Processing Sale Co., Ltd.
Masteel (Guangzhou) Processing & Distribution Co., Ltd.
Anhui Masteel Holly Industries Co., Ltd.
Maanshan Magang Huayang Equipment Diagnostic Engineering Co., Ltd.
Magang (Jinhua) Steel Processing Co., Ltd.
Magang (Hefei) Steel Co., Ltd.
Etc.
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:
Industrial and Commercial Bank of China Ma'anshan
Magang Sub-branch
AC#: 1306020429001202649
FINANCIALS
Consolidated
Balance Sheet
|
Unit: CNY’000 |
As of Dec. 31,
2017 |
As of Mar. 31,
2018 |
|
Cash |
4,978,352 |
4,651,601 |
|
Notes receivable |
8,375,167 |
7,803,007 |
|
Accounts receivable |
966,447 |
895,676 |
|
Advances to suppliers |
750,819 |
456,780 |
|
Interest receivable |
6,391 |
2,801 |
|
Other receivable |
278,837 |
338,442 |
|
Inventory |
11,445,748 |
12,611,681 |
|
Prepaid expenses |
0 |
0 |
|
Other current assets |
5,296,778 |
4,661,971 |
|
|
------------------ |
------------------ |
|
Current assets |
32,098,539 |
31,421,959 |
|
Long-term investment |
1,525,225 |
1,579,628 |
|
Investment real estate |
57,509 |
57,017 |
|
Fixed assets |
33,130,499 |
32,180,111 |
|
Construction in progress |
1,805,956 |
2,246,605 |
|
Intangible assets |
1,883,604 |
1,873,216 |
|
Long-term prepaid expenses |
0 |
0 |
|
Deferred income tax assets |
478,235 |
502,384 |
|
Other non-current assets |
1,212,023 |
1,028,344 |
|
|
------------------ |
------------------ |
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Total assets |
72,191,590 |
70,889,264 |
|
|
============= |
============= |
|
Short-term loans |
4,630,304 |
4,089,594 |
|
Notes payable |
4,809,848 |
3,770,402 |
|
Accounts payable |
6,968,534 |
6,593,210 |
|
Payroll payable |
654,822 |
506,609 |
|
Taxes payable |
1,342,836 |
475,174 |
|
Advances from clients |
3,842,903 |
3,912,189 |
|
Other payable |
2,224,169 |
2,775,131 |
|
Accrued expenses |
0 |
0 |
|
Other current liabilities |
11,644,722 |
12,444,000 |
|
|
------------------ |
------------------ |
|
Current liabilities |
36,118,138 |
34,566,309 |
|
Non-current liabilities |
8,836,188 |
7,462,237 |
|
|
------------------ |
------------------ |
|
Total liabilities |
44,954,326 |
42,028,546 |
|
Equities |
27,237,264 |
28,860,718 |
|
|
------------------ |
------------------ |
|
Total liabilities & equities |
72,191,590 |
70,889,264 |
|
|
============= |
============= |
Consolidated
Income Statement
|
Unit: CNY’000 |
As of Dec. 31,
2017 |
Jan. 1, 2018 to Mar. 31, 2018 |
|
Revenue |
73,228,029 |
18,307,871 |
|
Cost of sales |
63,556,258 |
15,860,726 |
|
Taxes and surcharges |
741,194 |
180,075 |
|
Sales expense |
865,396 |
196,519 |
|
Management expense |
1,419,135 |
394,398 |
|
Finance expense |
998,780 |
251,330 |
|
Investment income |
676,516 |
340,031 |
|
Non-operating income |
176,124 |
168 |
|
Non-operating expense |
16,625 |
730 |
|
Profit before tax |
5,808,966 |
1,780,261 |
|
Less: profit tax |
736,728 |
150,266 |
|
Profits |
5,072,238 |
1,629,995 |
Important Ratios
=============
|
|
As of Dec. 31,
2017 |
As of Mar. 31,
2018 |
|
*Current ratio |
0.89 |
0.91 |
|
*Quick ratio |
0.57 |
0.54 |
|
*Liabilities to assets |
0.62 |
0.59 |
|
*Net profit margin (%) |
6.93 |
8.90 |
|
*Return on total assets (%) |
7.03 |
2.30 |
|
*Inventory / Revenue ×365/90 |
58 days |
62 days |
|
*Accounts receivable / Revenue ×365/90 |
5 days |
5 days |
|
*Revenue / Total assets |
1.01 |
0.26 |
|
*Cost of sales / Revenue |
0.87 |
0.87 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
The revenue of SC appears fairly good in its line.
SC’s net profit margin is fairly good.
SC’s return on total assets is fairly good.
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY: AVERAGE
The current ratio of SC is maintained in a fair level.
SC’s quick ratio is maintained in a fair level.
The inventory of SC appears average.
The accounts receivable of SC appears small.
The short-term loans of SC appear large.
SC’s revenue is in an average 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 Good.
CONCLUSIONS
SC is considered large-sized in its line with fairly good financial conditions.
Taking into consideration of SC’s good background, general performance,
reputation as well as market conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
INR 67.45 |
|
|
1 |
INR 89.79 |
|
Euro |
1 |
INR 78.79 |
|
CNY |
1 |
INR 10.47 |
Note :
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
|
Analysis Done by
: |
PRA |
|
|
|
|
Report Prepared
by : |
TPT |
RATING EXPLANATIONS
|
Credit Rating |
Explanation |
Rating Comments |
|
A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
|
A+ |
Low Risk |
Business dealings permissible with low
risk of default |
|
A |
Acceptable Risk |
Business dealings permissible with moderate
risk of default |
|
B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
|
C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
|
D |
High Risk |
Business dealing not recommended or on secured
terms only |
|
NB |
New Business |
No recommendation can be done due to
business in infancy stage |
|
NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
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 are as follows:
·
Financial
condition covering various ratios
·
Company
background and operations size
·
Promoters
/ Management background
·
Payment
record
·
Litigation
against the subject
·
Industry
scenario / competitor analysis
·
Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.