MIRA
INFORM REPORT
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Report Date : |
16th
February, 2007 |
IDENTIFICATION
DETAILS
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Name : |
HANGZHOU STEAM TURBINE CO., LTD. |
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Registered Office : |
No.
357 Shiqiao Road, Hangzhou, Zhejiang
Province, 310022 Pr China |
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Country : |
China |
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
23.04.1998 |
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Com. Reg. No.: |
002150 |
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Legal Form : |
Shares
Limited Company |
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Line of Business : |
Engaged in designing and manufacturing
the steam turbine and relevant accessories, parts, selling its owned products
and providing after-sale service |
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 |
NAME & ADDRESS
HANGZHOU STEAM TURBINE CO., LTD.
NO. 357
SHIQIAO ROAD, HANGZHOU,
ZHEJIANG
PROVINCE, 310022 PR CHINA
TEL: 86 (0) 571-85780198
FAX: 86 (0) 571-85780433
EXECUTIVE SUMMARY
INCORPORATION DATE : APRIL 23, 1998
REGISTRATION NO. : 002150
REGISTERED LEGAL FORM : Shares
limited company
STAFF STRENGTH :
2,399
REGISTERED CAPITAL : rmb 220,000,000
BUSINESS LINE :
manufacturing
TURNOVER :
RMB 1,735,737,000
(AS OF DEC. 31, 2005)
EQUITIES :
RMB 863,276,000 (AS OF DEC. 31, 2005)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : FAVORABLE TERMS
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STrong
OPERATIONAL TREND : UPWARD
GENERAL REPUTATION : fairly good
EXCHANGE RATE :
RMB8.02 = US$1 AS OF 2006-05-25
SC
was registered as a Shares limited company at local Administration for Industry
& Commerce (The official body of
issuing and renewing business license) on April 23,
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 characteristics
of the shares limited co. are as follows: The establishment of
the co. requires at least five promoters and at least three of them must be
PR- China controlled legal persons. Natural person can not be allowed to
serve as promoters. The minimum
registered capital of a co. is RMB 10M. while that of the co. with foreign
investment is RMB 30M. The total capital of a co. which propose to apply
for publicly listed must not less than RMB 50M. The board of
directors must consist of an odd number 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
three years of the offer. Directors can not transfer the shares they hold
in the co. during their terms of office. 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 processing textile machinery, paper manufacture machinery, pump, casting products, electric tools, speed-transfer gear, heat exchanger, tube, and numerical control appliance and the standby redundancy of the above product; undertaking internal and overseas machinery project and internal international biding project, and dispatching labors for the above projects; undertaking thermoelectricity project; purchasing the raw material, equipment and standby redundancy for the group members, selling the member companies’ products, and supplying water, electronic, gas to the group subsidiaries.
SC is mainly engaged in designing and manufacturing the steam turbine and relevant accessories, parts, and selling its owned products and providing after-sale service.
Mr. Nie Zhonghai has been chairman of SC since 2003.
SC owns about 2,399 staff 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 Hangzhou. Our checks reveal that SC rents the total premise about 84,964 square meters.
http://www.htc.net.cn The design is professional and the content is well organized. At present the web site is both in Chinese and English versions.
E-mail: webmaster@htc.net.cn
SC is a listed company in Shenzhen Stock Exchange Market and its stock code is: 200771.
MAIN SHAREHOLDERS:
Name %
of Shareholding
HangZhou Steam Turbine & Power Group Co., Ltd. 63.64
DRAGON BILLION CHINA FUND 2.71
GUOTAI JUNAN SECURIES HONG KONG LIMITED 2.49
PRUDENTAL UNIT TRUSIS-DRAGON PEACOCK FUND 1.14
HTHK-VALUE PARTERS INTELLIGENT FD-CHINA B SHS FD 1.04
BBH BOS S/.A MST TSTBK OF JP RE: JF CN ACTIVE OPEN MOTHER FD 0.84
CHINA MERCHANTS SECURITIES (HK) CO., LTD. 0.81
SKAN IA GLOBAL FUNDS PLC 0.77
GSI S/A GOLDEN CHINA MASTER FUND 0.76
BBH BOS S/.A MAT TSTBK OF JP-JF MTB GREATER CH OPEN F 0.73
Other circulation stocks 25.07
l
Chairman:
Mr. Nie
Zhonghai, 49 years old with university education. He is currently responsible
for the overall management of SC.
Working Experience(s):
From 1979 to 1984 Worked
in Hangzhou Match Co., Ltd.
From 1984 to 1997 Worked in Hangzhou Economy &
Trade Committee;
From 1997 to
2003 Acted as chairman
and general manager of Hangzhou Thermal Power Group Co., Ltd.
From 2003 to present Working in SC
as chairman.
Also working
in Hangzhou Steam Turbine & Power Group Co., Ltd.as
chairman.
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General Manager:
Mr. Yan
Jianhua , 48 years old with university education. He is currently responsible
for the daily management of SC.
Working Experience(s):
From 2003 to present
Working in SC as general
manager.
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Vice General Manager:
Mr. Ye Zhong, 37 years old
with university education. He is currently responsible for the daily management
of SC.
Working Experience(s):
From 2004 to present Working
in SC as vice general manager.
SC is mainly engaged in designing and manufacturing the steam turbine and relevant accessories, parts, selling its owned products and providing after-sale service.
SC’s products mainly include: industrial drive steam turbine and industrial power plant steam turbine.
Brand: HTC.
SC has successfully developed boiler
water pump steam turbine of 600MW used in power station, turbine for an annual
capacity of 200,000 tons ethylene set, 50MW turbine for combined heat and power
generation (CHP).
SC sources its materials 80% from
domestic market, and 20% from international market, mainly from USA, Japan and
European countries. SC sells 75% of its products in domestic market, and 25% to
international market, mainly to South Korea, European countries and Southeast
Asia countries.
The
buying terms of SC include T/T, L/C and Credit of 30-90 days. The payment terms
of SC include T/T, L/C and Credit of 30-90 days.
SC’s
major suppliers include:
Siemens Inc.
Hangzhou Nanfang Gear Speed Reducer Industrial Corp.
Hangzhou Nanling Steam Turbine Accessories Factpry.
SC’s
major clients include:
Hangzhou Hangfa Group Corp.
HangZhou Steam Turbine & Power Group
Co., Ltd.
SC is
known to have a subsidiary as following:
Zhejiang Steam Complete Technology Development Co.,
Ltd.
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.
Industrial
and Commercial Bank of China Hangzhou Branch
AC#1202020009814001129
Relationship:
Normal.
Balance Sheet
Unit: RMB thousand yuan
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Dec. 31 of 2004 |
Dec. 31 of 2005 |
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Cash & bank |
465,662 |
262,992 |
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Inventory |
306,137 |
392,713 |
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Accounts receivable |
204,763 |
398,129 |
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Other Accounts receivable |
54,303 |
13,547 |
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To be apportioned expense |
0 |
0 |
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Other current assets |
189,374 |
121,107 |
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------------------ |
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Current assets |
1,220,239 |
1,188,488 |
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Fixed assets |
495,478 |
570,500 |
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Fixed assets net value |
226,779 |
285,825 |
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Projects under construction |
86,531 |
108,469 |
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Long term investment |
110,390 |
147,342 |
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Other assets |
44,236 |
155,917 |
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Total assets |
1,688,175 |
1,886,041 |
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Short loans |
0 |
0 |
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Accounts payable |
92,490 |
129,827 |
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Other Accounts payable |
9,344 |
24,900 |
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Advances from customers |
900,426 |
802,224 |
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Withdraw the expenses in
advance |
0 |
0 |
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Other current liabilities |
27,017 |
62,300 |
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Current liabilities |
1,029,277 |
1,019,251 |
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Long term liabilities |
2,966 |
3,514 |
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Other liabilities |
0 |
0 |
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Total liabilities |
1,032,243 |
1,022,765 |
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Equities |
655,932 |
863,276 |
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Total liabilities &
equities |
1,688,175 |
1,886,041 |
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Income Statement
Unit: RMB thousand yuan
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Dec. 31 of 2004 |
Dec. 31 of 2005 |
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Turnover |
899,528 |
1,735,737 |
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Cost of goods sold |
535,939 |
1,111,420 |
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Sales expense |
18,368 |
33,679 |
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Management expense |
113,289 |
186,046 |
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Finance expense |
-2,844 |
-2,583 |
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Profit before tax |
249,724 |
474,212 |
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Less: profit tax |
65,996 |
118,920 |
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Profits |
183,728 |
355,292 |
Important Ratios
2004 2005
*Current ratio 1.19 1.17
*Quick ratio 0.89 0.78
*Liabilities to
assets 0.61 0.54
*Net profit
margin (%) 20.42 20.47
*Return on total
assets (%) 10.88 18.84
*Inventory
/Turnover ×365 124 days 83
days
*Accounts receivable/Turnover
×365 83
days 84 days
*Turnover/Total
assets 0.53 0.92
* Cost of goods
sold/Turnover 0.60 0.64
PROFITABILITY: GOOD
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The
turnover of SC appears average in its line.
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SC’s
net profit margin is good.
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SC’s
return on total assets is good.
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SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIRLY GOOD
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The
current ratio of SC is maintained in a normal level.
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SC’s
quick ratio is maintained in a normal 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 acceptable level.
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SC
has no short-term loan in 2005.
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SC’s
turnover is in an acceptable level, comparing with the size of its total
assets.
LEVERAGE: FAIRLY GOOD
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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: Strong.
SC is
considered large-sized in its line with strong financial conditions. Credit
dealings with SC is favorable terms can be considered.
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/normal. |
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 |