MIRA
INFORM REPORT
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Report Date : |
19.05.2008 |
IDENTIFICATION
DETAILS
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Name : |
TIANJIN OTIS
ELEVATOR CO., LTD. |
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Registered Office : |
North No.9 Avenue And West To Taihua Road, Tianjin Economic And Technological
Development Area, 300210 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2007 |
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Date of Incorporation : |
15.12. 2005 |
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Com. Reg. No.: |
018019 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
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 : |
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
TIANJIN OTIS
ELEVATOR CO., LTD.
NORTH NO.9 AVENUE AND WEST TO TAIHUA ROAD, TIANJIN
ECONOMIC AND TECHNOLOGICAL DEVELOPMENT AREA, 300210 PR CHINA
TEL: 0086-22-28101188 FAX:
0086-22-28301256
EXECUTIVE SUMMARY
INCORPORATION DATE :
DEC. 15, 2005
REGISTRATION NO. :
018019
REGISTERED LEGAL FORM : CHINESE-FOREIGN
EQUITY JOINT VENTURE ENTERPRISE
CHIEF EXECUTIVE :
MR. LI XIUTAO (CHAIRMAN)
STAFF STRENGTH :
2,300
REGISTERED CAPITAL : CNY
200,000,000
BUSINESS LINE :
MANUFACTURING
TURNOVER :
CNY 2,547,130,000 (AS OF DEC.
31, 2007)
EQUITIES :
CNY 288,230,000 (AS OF DEC. 31, 2007)
PAYMENT :
AVERAGE
RECOMM. CREDIT RANGE : UP TO
USD 2,000,000 (PERIODICAL REVIEW)
MARKET CONDITION :
COMPETITIVE
FINANCIAL CONDITION :
FAIRLY STABLE
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : WELL
KNOWN
EXCHANGE RATE :
CNY 6.97653 = USD 1
Adopted abbreviations:
ANS - amount not stated
NS - not stated
SC - subject company (the company inquired by you)
NA - not available
CNY - China Yuan Renminbi
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 Dec. 15, 2005.
Company Status: Chinese-foreign
equity joint venture enterprise This form of
business in PR China is defined as a legal person. It is a limited co.
jointly invested by one or more foreign companies and one or more PR China
controlled companies within the territories of PR China according to a
certain proportion of capital investment. The investing parties exercise
business management, share profits and bear all risks and liabilities of
the co. together. The equity joint venture law requires that foreign party
contribute not less than 25% of the registered capital, with no maximum.
The investing parties are free to agree on method of profit distribution
and liabilities bearing according to the proportion of capital investment.
Each investing parties contributes funds, tangible assets, technology &
etc. The board of directors excises the high authority. The joint venture
usually has a limited duration of 10 to 50 years. Enterprise with large
investment, long construction periods, low investment returns, introducing
of advanced technology & advanced technology products that have good
competition position in international market may extend beyond the 50 years
limit.
C’s registered
business scope includes researching, developing, designing, producing, processing,
assembling, popularizing, selling, installing, repairing, maintaining and
transforming cargo and passenger elevators, escalators, moving walks, power
dumbwaiter and related transmitters, screen doors, power operated doors and
control cabinets, gantry crane, steering hand wheel and other
numerically-controlled systems, alternating current servo motors, constant
magnetism synchronous motors, stator-rotor motors and stamped steels and other
new-style electromechanical components, bumpers (including hydraulic presser
buffers), other related products and components used in residential &
commercial buildings, hospitals, shopping malls, exhibition halls, ports,
subways, railway stations, airports, other buildings and public places;
importing, exporting and distributing similar products (including wholesale,
retail and commission agent).
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 2005.
SC is known to have approx. 2,300 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 Tianjin. Our checks
reveal that SC owns the total premise about 12,540 square meters.
SC is
not known to host web site of its own.
No significant events or changes were found during our checks with the
local Administration for Industry and Commerce.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Otis Elevator Investment (China) Co., Ltd.
(U.S.A.) 100
l
Legal representative, chairman and
general manager:
Mr. Li Xiutao, in his 60’s with university education. He is currently
responsible for the overall management of SC.
Working Experience(s):
From 2005 to present Working
in SC as chairman, legal representative and general manager.
l
Financial manager:
Mr. Zhang Zhijie , with university education. He is currently
responsible for the financial management of SC.
Working Experience(s):
At present Working
in SC as financial manager.
SC is mainly engaged
in designing, manufacturing, installing and selling various kinds of elevators.
SC’s products mainly include: tractive elevator, hydraulic elevator,
escalator and its related parts.
SC sources its materials 80% from domestic market and 20% from the
overseas market. SC sells 20% of its products to overseas market and 80% in domestic market.
The buying terms of SC include Check, L/C, T/T and Credit of 30-60 days.
The payment terms of SC include Check, T/T, L/C, and Credit of 30-60 days.
SC is
not known to have any subsidiary at present.
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.
Bank of China Tianjin Branch
AC#800100208508093001
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
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as
of Dec. 31, 2007 |
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Cash & bank |
81,050 |
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Bills receivable |
13,620 |
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Accounts
receivable |
834,410 |
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Other
receivables |
18,490 |
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Advances to
suppliers |
-165,220 |
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Inventory |
307,040 |
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Prepaid expenses |
320 |
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Other current
assets |
0 |
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------------------ |
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Current assets |
1,089,710 |
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Fixed assets |
270,040 |
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Fixed assets net
value |
266,740 |
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Projects under
construction |
3,300 |
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Long term
investment |
0 |
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Other assets |
31,120 |
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Other intangible
assets |
2,150 |
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------------------ |
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Total assets |
1,393,020 |
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============= |
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Short loans |
100,000 |
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Bills payable |
0 |
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Accounts payable |
835,840 |
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Welfare payable |
0 |
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Advances from clients |
6,310 |
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Accrued payroll |
0 |
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Tax payable |
13,950 |
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Other payable |
6,360 |
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Accrued expenses |
142,330 |
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Other current
liabilities |
0 |
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Current
liabilities |
1,104,790 |
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Long term
liabilities |
0 |
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Total
liabilities |
1,104,790 |
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Equities |
288,230 |
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------------------ |
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Total
liabilities & equities |
1,393,020 |
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Income Statement
Unit: CNY’000
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as of Dec. 31, 2007 |
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Turnover |
2,547,130 |
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Cost of goods
sold |
2,273,620 |
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Sales expense |
67,560 |
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Management expense |
121,140 |
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Finance expense |
-140 |
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Profit before
tax |
89,610 |
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Less: profit tax |
0 |
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Profits |
89,610 |
Important Ratios
=============
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as
of Dec. 31, 2007 |
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*Current ratio |
0.99 |
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*Quick ratio |
0.71 |
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*Liabilities
to assets |
0.79 |
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*Net profit
margin (%) |
3.52 |
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*Return on
total assets (%) |
6.43 |
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*Inventory
/Turnover ×365 |
44 days |
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*Accounts
receivable/Turnover ×365 |
120 days |
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*Turnover/Total
assets |
1.83 |
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* Cost of
goods sold/Turnover |
0.89 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears fairly good in its line.
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SC’s net profit margin is average.
l
SC’s return on total assets is fairly good.
l
SC’s cost of goods sold is average, comparing with its turnover.
LIQUIDITY: FAIR
l
The current ratio of SC is maintained in a fair level.
l
SC’s quick ratio is maintained in a fair level.
l
The inventory conversion period of SC appears average.
l
The accounts receivable of SC appears fairly large.
l
SC’s short-term loan is in an average level.
l
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 Stable.
SC is considered large-sized in its line with fairly stable financial conditions.
The large amount of accounts receivable could be a threat to SC’s financial
condition. A credit line up to USD 2,000,000 would appear to be within SC’s
capacities upon a periodical review basis.
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%)