MIRA
INFORM REPORT
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Report Date : |
02.07.2007 |
IDENTIFICATION DETAILS
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Name : |
HANGZHOU STEAM TURBINE CO., LTD. |
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Registered Office : |
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Country : |
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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.
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.
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
GUOTAI JUNAN SECURIES
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
SKAN IA GLOBAL FUNDS PLC 0.77
GSI S/A GOLDEN
BBH BOS S/.A MAT TSTBK OF JP-JF MTB GREATER CH OPEN F 0.73
Other circulation stocks 25.07
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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
From 1984 to 1997 Worked
in
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
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.
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:
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
AC#1202020009814001129
Relationship:
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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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 |
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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%)