MIRA
INFORM REPORT
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Report Date : |
29.03.2008 |
IDENTIFICATION
DETAILS
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Name : |
SUZHOU SCHINDLER
ELEVATOR CO., LTD. |
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Registered Office : |
No. 818 Jinmen Road, Suzhou, Jiangsu Province, 215004 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
07.12.1988 |
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Com. Reg. No.: |
320500400000065 |
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Legal Form : |
Wholly Foreign Owned Enterprise |
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Line of Business : |
Manufacturing and Selling various Elevators, Escalators and
Footway. |
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 : |
USD 2,000,000 |
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Status : |
Good |
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Payment Behaviour : |
No Complaints |
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Litigation : |
Clear |
name & address
SUZHOU SCHINDLER
ELEVATOR CO., LTD.
NO. 818 JINMEN ROAD, SUZHOU, JIANGSU
PROVINCE, 215004 PR CHINA
818
TEL: 86 (0) 512-67232429 FAX:
86 (0) 512-67231127
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 7, 1988
REGISTRATION NO. :
320500400000065
REGISTERED LEGAL FORM : WHOLLY FOREIGN OWNED ENTERPRISE
STAFF STRENGTH :
960
REGISTERED CAPITAL : CNY
155,372,592
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 1,736,020,000 (AS OF DEC. 31, 2007)
EQUITIES :
CNY 255,640,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 2,000,000
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : FAIRLY GOOD
OPERATIONAL TREND : steady
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 7.05= US$1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Ren Min Bi
SC was registered as a Chinese foreign equity joint venture
enterprise at local Administration for Industry & Commerce (AIC-The
official body of issuing and renewing business license) on December 7, 1988 and
has been under present ownership since Nov. 2006.
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 investors 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 manufacturing and selling various elevators,
escalators, automatic footway and related parts; assembling and repairing its
products; importing elevators, escalators, automatic footway and related
products that can not be produced by itself or not substitutable.
SC is mainly
engaged in manufacturing and selling various elevators, escalators and
automatic footway.
Mr. Zheng Ruiheng
has been chairman of SC since 2001.
SC is known
to have approx. 960 employees 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 Suzhou. Our checks
reveal that SC owns the total premise about 130,000 square meters.
SC is
not known to host website of its own at present.
SC’s former shareholders were:
Suzhou Elevator Factory 37.00%
Schindler Holding A.G. (Switzerland) 55.00%
Jardine Schindler
(Far East) Holding Inc. (Hong Kong) 8.00%
MAIN SHAREHOLDERS:
Name %
of Shareholding
Schindler Holding A.G. (Switzerland) 92
Jardine Schindler
(Far East) Holding Inc. (Hong Kong)
8
Schindler Holding A.G.
Founded in Switzerland in 1874, the Schindler
Group employs around 40,000 people worldwide and is listed on the SWX Swiss
Exchange. The Group comprises two core businesses: Elevators & Escalators,
which contributed 78% of sales in 2005, and also an IT distributor in Europe.
Add.
: Zugerstrasse 13, 6030 Ebikon, Switzerland
Tel.
: +41 445 30 61
Fax
: +41 445 31 44
E-Mail: investor.relations@schindler.com
Web
: http://www.schindler.com
l
Chairman:
Mr. Zheng Ruiheng , in his 50’s with university education. He is
currently responsible for the overall management of SC.
Working Experience(s):
From 2001 to present Working in SC as chairman.
l
General Manager:
Mr. Luo Deming , in his 50’s with university education. He is currently
responsible for the daily management of SC.
Working Experience(s):
From 2005 to present
Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling various elevators, escalators and
footway.
SC’s products
include various elevators, escalators and footway.
Its products types
include Schindler 700, Escalator—300P, Escalator 9300, etc.
SC sources its
materials 90% from domestic market, 10% from European Countries. SC sells 95%
of its products in domestic market and 5% to European and Southeast Asia
countries.
The buying terms of SC include Check, T/T and Credit of 30-60 days. The
payment terms of SC include T/T, L/C and Check and Credit of 30-60 days.
Major supplier:
===========
Switzerland Schindler Elevator Holding AG
Major clients:
==========
Xiamen Gaoqi Airport
Beijing New World Center
Shanghai Honglong Square
Suzhou Industry Park International Mansion
SC is
known to have 9 branches and 1 service department as below,
Suzhou Schindler Elevator Co., Ltd Suzhou
Branch
Suzhou Schindler Elevator Co., Ltd Nanjing
Branch
Suzhou Schindler Elevator Co., Ltd Beijing
Branch
Suzhou Schindler Elevator Co., Ltd Zhejiang
Branch
Suzhou Schindler Elevator Co., Ltd Hainan
Branch
Suzhou Schindler Elevator Co., Ltd Qingdao
Branch
Suzhou Schindler Elevator Co., Ltd Guangzhou
Branch
Suzhou Schindler Elevator Co., Ltd Shenzhen
Branch
Suzhou Schindler Elevator Co., Ltd Fujian
Branch
Suzhou Schindler Elevator Co., Ltd Wuxi
Service Department
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 refused to release any information of its
domestic suppliers and the trade reference was not available.
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 &
Commercial Bank of China Changmen Sub-Branch
AC#1102020509000170713
Relationship:
normal.
Balance Sheet
Unit: CNY’000
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As
of Dec. 31, 2007 |
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Cash & bank |
156,570 |
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Accounts
receivable |
358,010 |
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Advances to
suppliers |
5,270 |
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Other
receivables |
3,940 |
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Inventory |
177,530 |
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Other current
assets |
26,490 |
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------------------ |
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Current assets |
727,810 |
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Fixed assets net
value |
92,510 |
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Projects under
construction |
10,390 |
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Long term
investment |
0 |
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Other assets |
58,910 |
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------------------ |
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Total assets |
889,620 |
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============= |
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Short loans |
0 |
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Accounts payable |
300,190 |
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Advances from
clients |
224,250 |
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Taxes payable |
-32,760 |
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Salaries payable |
5,060 |
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Other payable |
19,520 |
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Other current
liabilities |
117,720 |
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------------------ |
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Current
liabilities |
633,980 |
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Long term
liabilities |
0 |
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------------------ |
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Total
liabilities |
633,980 |
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Equities |
255,640 |
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------------------ |
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Total
liabilities & equities |
889,620 |
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============= |
Income Statement
Unit: CNY’000
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As of Dec. 31, 2007 |
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Turnover |
1,736,020 |
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Cost of goods
sold |
1,536,490 |
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Sales expense |
65,610 |
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Management expense |
80,080 |
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Finance expense |
11,410 |
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Profit before
tax |
50,630 |
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Less: profit tax |
5,620 |
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Profits |
45,010 |
Important Ratios
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as
of Dec. 31, 2007 |
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*Current ratio |
1.15 |
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*Quick ratio |
0.87 |
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*Liabilities
to assets |
0.71 |
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*Net profit
margin (%) |
2.59 |
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*Return on
total assets (%) |
5.06 |
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*Inventory
/Turnover ×365 |
37days |
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*Accounts
receivable/Turnover ×365 |
75days |
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*Turnover/Total
assets |
1.95 |
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* Cost of
goods sold/Turnover |
0.88 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in 2007.
l
SC’s net profit margin is average in 2007.
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SC’s return on total assets is fairly good in 2007.
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SC’s cost of goods sold is average in 2007, comparing with its turnover.
LIQUIDITY: AVERAGE
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The current ratio of SC is maintained in a normal level.
l
SC’s quick ratio is maintained in a normal level.
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The accounts receivable of SC appears fairly large.
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The inventory of SC is average.
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SC has no short loan in 2007.
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SC’s turnover is in an average level, comparing with the size of its
total assets.
LEVERAGE: AVERAGE
l
The debt ratio of SC is fairly high.
l
The risk for SC to go bankrupt is low.
Overall financial
condition of the SC: Fairly Good.
SC is considered an old-established business in medium size.
Taking into consideration of SC’s general performance, reputation as well as
favorable background, we would rate SC as a low credit risk company.
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%)