MIRA
INFORM REPORT
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Report Date : |
22.08.2007 |
IDENTIFICATION DETAILS
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Name : |
CHINA TIANJIN OTIS
ELEVATOR Co., Ltd. |
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Registered Office : |
No. 443, |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
December 1, 1984 |
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Com. Reg. No.: |
000030 |
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Legal Form : |
Wholly Foreign-Owned |
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Line of Business : |
Engaged in designing, manufacturing, installing and selling various kinds of elevators. |
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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Maximum Credit Limit : |
Up To USD 3,000,000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
name & address
CHINA TIANJIN OTIS
ELEVATOR Co., Ltd.
NO. 443,
TEL :
86 (0) 22-28101188
FAX :
86 (0) 22-28301256
EXECUTIVE SUMMARY
INCORPORATION DATE : DECEMBER 1, 1984
REGISTRATION NO. : 000030
REGISTERED LEGAL FORM :
WHOLLY FOREIGN-OWNED
STAFF STRENGTH : 2,181
REGISTERED CAPITAL : usd 26,300,000
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY 2,621,300,000 (AS OF DEC. 31, 2006)
EQUITIES : CNY 463,400,000 (AS OF DEC. 31, 2006)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : fairly good
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : well-known
EXCHANGE RATE : CNY
7.59=US$1 AS OF 2007-08-22
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY -
SC was registered as a wholly foreign-owned enterprise at local Administration for Industry & Commerce (The official body of issuing and renewing business license) on December 1, 1984.
Company Status: Wholly foreign-owned enterprise This form of business in PR
China is defined as a legal person. It is a limited co. established within
the territories of PR China with capital provided totally by the foreign
investors. More than one foreign investor may jointly invest in a wholly
foreign-owned enterprise. The investing party/parties solely exercise
management, reap profit and bear risks and liabilities by themselves. This
form of companies usually have a limited duration is extendible upon approval
of Examination and Approval Authorities.
SC’s registered
business scope includes researching, designing, manufacturing, assembling,
selling, installing and repairing elevators, escalators, moving walks, sundry goods
elevators, electrical motors, reduction gears and its parts; importing and
selling Otis elevators which can’t be substituted or produced by SC.
SC is mainly
engaged in designing, manufacturing, installing and selling various kinds of
elevators.
Mr. Li Xiutao has been legal representative and chairman of SC since
December 1999.
SC is
known to have approx. 2,181 staff members at present.
SC is currently operating at the above stated address, and this
address houses its operating office and factory in the industrial zone of
Tianjin. Our checks reveal that SC owns the total premise about 6,000 square
meters.
http://www.otis.com/otis/1,1352,CLI79_RES1,FF.html
The design is professional and the content is well organized. At present it is
in both Chinese and English versions.
SC’s former shareholders were Otis Fareast Holding Co., Ltd., Tianjin Taikang
Industrial Corporation, and China International Trust and Investment
Corporation. In June, 2000, the shareholder was changed into the present one.
SC’s former legal form is Chinese-foreign equity joint venture
enterprise. In June 2000, it was changed into wholly
foreign-owned enterprise.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Otis Elevator Investment (
l
Legal representative and chairman:
Mr. Li Xiutao, 59 years old with university
education. He is currently responsible for the overall management of SC.
Working Experience(s):
From December 1999 to present Working in SC as chairman and legal representative.
SC is
mainly engaged in designing, manufacturing, installing and selling various
kinds of elevators.
SC mainly engaged
in manufacturing, installing, modernizing and maintaining elevators,
escalators, moving walks and shuttles, and providing sophisticated elevator
system for the tall building and simple lift for a two-story home.
Comprehensive in range and flexible in design, Otis
escalators can be adapted to the particular requirements of a building and to
the customer's individual needs.
Otis modernization provides you with an economic and
convenient way to upgrade your equipment with the latest technology and fresh
aesthetics and enhance the competitiveness of your building. Otis has a wide
range of modernization packages that can be tailored to suit the individual
objectives and budget of the customer.
SC
sources its materials 85% from domestic market, and 15% from
The buying terms of SC include Check, T/T, L/C and Credit of
30-90 days. The payment terms of SC include Check, T/T and Credit of 30-90
days.
SC is known to have the following subsidiaries:
Shenzhen
Branch
Urumchi
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 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.
Agriculture Bank of
AC#：1535893501040068965
Relationship:
Balance Sheet (as of Dec. 31, 2006)
Unit: CNY’000
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Cash & bank |
483,360 |
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Inventory |
41,730 |
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Accounts
receivable |
346,770 |
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Advances to
supplies |
6,130 |
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Notes receivable |
22,660 |
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Prepaid expenses |
790 |
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Other
receivables |
11,680 |
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Other current
assets |
93,400 |
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Current assets |
1,006,520 |
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Fixed assets |
170,830 |
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Fixed assets net
value |
104,670 |
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Projects under construction |
0 |
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Long term
investment |
840 |
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Other assets |
7,320 |
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Total assets |
1,119,350 |
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Short loans |
0 |
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Accounts payable |
30,600 |
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Other payable |
9,750 |
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Accounts payable between companies |
464,390 |
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Taxes payable |
-3,790 |
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Accrued expenses |
146,640 |
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Other current
liabilities |
8,360 |
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Current
liabilities |
655,950 |
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Long term
liabilities |
0 |
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Total
liabilities |
655,950 |
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Equities |
463,400 |
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Total
liabilities & equities |
1,119,350 |
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Income Statement (as of Dec. 31, 2006)
Unit: CNY’000
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Turnover |
2,621,300 |
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Cost of goods
sold |
2,198,670 |
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Sales expense |
37,800 |
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Management expense |
79,620 |
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Finance expense |
6,260 |
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Profit before
tax |
300,570 |
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Less: profit tax |
60,530 |
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Profits |
240,040 |
Important Ratios
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as
of Dec. 31, 2006 |
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*Current ratio |
1.53 |
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*Quick ratio |
1.47 |
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*Liabilities
to assets |
0.59 |
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*Net profit
margin (%) |
9.16 |
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*Return on
total assets (%) |
21.4 |
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*Fixed
assets/Total assets |
0.09 |
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*Inventory
/Turnover ×365 |
6days |
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*Accounts
receivable/Turnover ×365 |
48days |
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*Turnover/Total
assets |
2.34 |
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* Cost of
goods sold/Turnover |
0.84 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
l
SC’s net profit margin is fairly good.
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SC’s return on total assets is good.
l
SC’s cost of goods sold is average, comparing with
its turnover.
LIQUIDITY: FAIRLY
GOOD
l
The current ratio of SC is maintained in a fairly
good level.
l
SC’s quick ratio is maintained in a fairly good
level.
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The inventory of SC is maintained in an average
level.
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The accounts receivable of SC is maintained in an
average level.
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SC has no short-term loan in 2006.
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SC’s turnover is in a fairly good level, comparing
with the size of its total assets.
LEVERAGE: AVERAGE
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The debt ratio of SC is average.
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The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly good.
SC is considered large-sized in its line with fairly good financial conditions.
A credit line up to USD 3,000,000 would appear to be within SC’s capacities.
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems comparatively
below average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
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This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)