MIRA INFORM
REPORT
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Report Date : |
12.01.2011 |
IDENTIFICATION DETAILS
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Name : |
ZTE CORPORATION |
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Registered Office : |
Zte Plaza, No. 55 South Keji Road, Hi-Tech Industrial Park, Nanshan District, Shenzhen City, Guangdong Province 518057 Pr |
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Country : |
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Financials (as on) : |
30.09.2010 |
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Date of Incorporation : |
11.11.1997 |
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Com. Reg. No.: |
440301103852869 |
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Legal Form : |
Shares Limited Company |
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Line of Business : |
manufacturing and selling wireless products, network products and terminal
products |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
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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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Status : |
Good |
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Payment
Behaviour : |
No Complaints |
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Litigation : |
Clear |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – June 30, 2010
|
Country Name |
Previous Rating (01.04.2010) |
Current Rating (30.06.2010) |
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a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
ZTE CORPORATION
TEL: 86 (0) 755-26770282/26770000 FAX: 86 (0) 755-26770286
EXECUTIVE SUMMARY
INCORPORATION DATE : NOV. 11, 1997
REGISTRATION NO. : 440301103852869
REGISTERED LEGAL
FORM : SHARES LIMITED CO.
STAFF STRENGTH : 70,345
REGISTERED CAPITAL :
CNY 2,866,731,684
BUSINESS LINE : MANUFACTURING
TURNOVER : CNY
46,062,300,000 (CONSOLIDATED, JAN. 1 TO SEP. 30, 2010)
EQUITIES : CNY
22,521,500,000 (CONSOLIDATED, AS OF SEP. 30, 2010)
PAYMENT : AVERAGE
RECOMM.
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : STRONG
OPERATIONAL TREND :
STEADY
GENERAL REPUTATION : WELL-KNOWN
EXCHANGE RATE : CNY 6.60 = USD 1
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 shares limited co. at local Administration for Industry & Commerce (AIC-The official body of issuing and renewing business license) on Nov. 11, 1997.
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 co has independent
property of legal person and enjoys property rights of legal person. The characteristics of the shares limited co. are as
follows: The establishment of the co.
requires at least two promoters and no more than 200, half of whom shall be domiciled
in The minimum registered capital
of a co. is CNY The board of directors must
consist 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 one year of the
offer. 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
cell-type communication system, multimedia communication system, and
transmitting system; developing and manufacturing equipment of mobile
communication, satellite communication, and micro-wave communication,
Beep-Pager, computer software, hardware, closed circuit television, micro-wave
communication, automation system of signal, message processing system of
computer, supervisory system of process, and warning system; and the
technological design, development, consultation, and service of wired and
wireless communication projects, including railway, orbit traffic of subway,
highway, mines, port, dock, and airport, and purchasing and selling electronic
equipment, microelectronic devices (excluding the products privileged, prohibited
or franchised), undertaking overseas and relative projects, and international bidding projects in China, also
importing and exporting equipment and material needed by the above overseas
projects, providing labor service for overseas projects, and technological
development, purchase and sales of electronic system; and import and export
business, in addition, professional contract of telecommunication projects;
leasing its own houses.
SC is mainly engaged in manufacturing and
selling wireless products, network products and terminal products.
Mr. Hou Weigui is the legal representative
and chairman of SC at present.
SC is known to have approx. 70,345 employees at present.
SC is currently
operating at the above stated address, and this address houses its operating office
and factory in the development zone of Shenzhen. Our checks reveal that SC owns
the total premise, but SC’s accountant refused to release the gross area of the
premise.
http://www.zte.com.cn/
The design is professional and the content is well organized. At present, the
web is in Chinese, English, German versions, etc.
E-mail: fengjianxiong@zte.com.cn
SC was listed in
Shenzhen Stock Exchange Market with the code of
In December 2004, SC
was successfully listed on the Main Board of The Stock Exchange in
2000
Launched the world's
first CDMA handset with detachable SIM card
Successfully put
through the first CDMA2000 1x call using ZTE equipment
2001
Constructed ZTE's
first CDMA network for China Unicom, with a capacity of up to 1.1 million lines
Constructed the
world's first Softswitch network for China Netcom
Ranked No.
2002
Established ZTE
handsets as a strategic product and a new source of revenue growth
Partnered with Intel
(
Established ZTE
Global Customer Support Centre
2003
Strategic emphasis
on international business, with the number of international marketing staff
increased by over 100%
Became the largest
CDMA system provider to BSNL,
2004
Listed on the Hong Kong
Stock Exchange as the first A to H listed Chinese enterprise
Launched the world's
first CDMA2000-based digital trunking technology – GoTa (Global open Trunking
architecture)
Provided telecoms
services for the 2004 Olympic Games in
Made the first
2005
Ranked as one of the
'Top 100 Information Technology Companies' by BusinessWeek
Joined the league of
global telecoms giants by teaming up with Alcatel,
Became
Became one of the
three largest DSLAM suppliers worldwide (Source: Gartner)
Further enhanced its
presence in
Changes of its registered information:
|
Date |
Item |
Before the
change |
After the
change |
|
2009-2 |
Registered no. |
4403011015176 |
Present one |
MAIN SHAREHOLDERS: (As of Jun.
30, 2010)
Name % of Shareholding
Shenzhen ZTE New Communication Equipment Co., Ltd. 32.45
HKSCC Nominees Limited (
China Life Insurance Company Limited- Individual Bonus -005L-FH002
2.02
Industrial and Commercial Bank of China-Guangfa Jufeng Security
Investment Fund 1.44
Industrial Bank Co., Ltd.-Industrial investment trend in hybrid
securities investment fund (LOF) 1.09
Hunan Nantian Group Co., Ltd. 1.09
Industrial and Commecial Bank of China-Yifangda Security Investment
fund 0.92
Bank of China-Yifangda Shenzheng 100 Security Investment Fund 0.9
Bank of China-Yifangda Celue Chengzhang No. 2 Security Investment Fund 0.85
Bank of China-Yifangda Celue Chengzhang Security Investment Fund 0.77
Other shareholders 40.20
Shenzhen ZTE New Communication Equipment Co., Ltd.
==========================================
Incorporation Date : Apr. 29, 1993
Chief Executive : Mr. Xie Weiliang (Chairman)
Registered Capital : Cny 100,000,000
Hunan Nantian Group Co., Ltd.
=======================
Add:
Tel: 86 0731-82265137
HKSCC Nominees Limited (HK)
=======================
CR No. : 0309729
Registered Legal
Form: Private
Incorporation Date:
May 14, 1991
l
Legal
Representative and Chairman:
Mr. Hou Weigui, born in 1942, with university education. He is currently responsible for the overall management of SC.
Working Experience(s):
At present Working in SC as legal representative and chairman;
Also working in Shenzhen ZTE New Communication Equipment
Co., Ltd. as vice-chairman.
l
CEO:
Mr. Shi Lirong, born
in 1964, with Master’s degree. He is currently responsible for the daily
management of SC.
Working Experience(s):
At present Working in SC as CEO;
Also working in Shenzhen ZTE New Communication Equipment Co., Ltd. as director.
SC is mainly engaged in manufacturing and
selling wireless products, network products and terminal products.
SC’s products mainly include: IC product, IT product, supervisory
system and mobile telephone, etc.
SC sources its materials 70% from domestic
market, and 30% from the overseas market. SC sells 40% of its products in
domestic market, and 60% to the overseas market, mainly in
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 30-60 days.
Research and Development
=======================
With more than 33%
of its workforce dedicated to R&D and with 10% of its annual revenues channeled
to this field, ZTE has established 15 R&D centers and Institutes across
North America, Europe and
International
standards such as CMM and CMMI are strictly applied across all ZTE R&D
management processes. Using these scientific management mechanisms and shared
technology platforms, ZTE has standardized its R&D processes, shortened
R&D periods, reduced costs, optimized design flows and guaranteed the
performance of new products.
The company's
commitment to innovation ensures that its products stay at the leading edge of
modern communications technology.
By the end of 2007,
ZTE had applied for around 12,000 national or international patents, 90% out of
which were innovation patents with associated intellectual property rights.
In 2000, ZTE
launched the world's first CDMA mobile phone with detachable SIM card. In 2004,
the company launched the world's first CDMA-based digital trunking technology -
GoTa (Global open Trunking architecture system) which included many
technologies based on ZTE-owned intellectual property.
As a leading global
provider of telecommunications equipment and network solutions, ZTE plays an
important role in the international telecoms community. The company is an
active member of more than 50 international standardization organizations and
forums.
ZTE holds the
position of Co-chairman in two ITU-T working groups and Editor of ITU-T
standards including NGN, optical transmission and network security. As a member
of 3GPP, ZTE has edited three standards involving
ZTE has established
strategic cooperation agreements with leading telecoms giants such as Portugal
Telecom, France Telecom, Alcatel, Ericsson and Nortel in NGN and mobile
systems, with Hutchison in
The company has also
established joint laboratory partnerships with Texas Instruments, Intel, Agere
Systems, HHNEC, IBM, Microsoft (China), Qualcomm, Huahong NEC and Tsinghua
University. The company has undertaken technological research alliance projects
with 50 academic institutions throughout
*Major Suppliers:
=============
Shenzhen ZTE New Communication Equipment Co., Ltd.
Tel: 0755-26773000
Fax: 0755-25738717
Shenzhen ZTE Weixiantong Equipment Co., Ltd.
Tel:
0755-25733351/25739300
Fax: 0755-25704048
*Major Customers:
=============
Shenzhen ZTE Information
& Technology Co., Ltd.
Tel: 0755-83432699
Fax: 0755-83432694
Shenzhen ZTE
Integrated Circuit Design Co., Ltd.
Tel: 0755-86169099
Fax: 0755-86169100
SC is known to have
the following subsidiaries:
· Shenzhen ZTE Kangxun Electronics Co., Ltd.
· Shenzhen ZTE Software Co., Ltd.
· ZTE (H.K.) Limited
· Shenzhen ZTE Communication Technology Service Co., Ltd.
· ZTE Telecom India Private Limited
· Nanjing ZTE Soft Technology Co., Ltd.
· Shenzhen Changfei Investment Co., Ltd.
· Shenzhen ZTE Communication Co., Ltd.
· Wuxi Zhongxing Optoelectronics Technology Co., Ltd.
·
· Shenzhen ZTE Jixun Communication Co., Ltd.
· Shanghai ZTE Technologies Ltd.
·
· Wanaag Communications Limited
· Kaznurtel Limited Liability Company
·
ZTE
· ZTE Hrvatska D.O.O.
· ZTE Corporation Bulgaria Ltd.
· ZTE Deutschland GmbH
·
ZTE
· Newinfo Holdings Limited
· ZTE Canada Inc.
·
ZTE
· Congo-Chine Telecom International Network (CCTNET)
· ZTE Ghana Limited Etc.
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 records and our debt
collection record concerning SC.
Trade payment experience: SC’s suppliers declined to make any comments.
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.
China Construction Bank Shenzhen Branch
AC# 006002630033847
Relationship:
China Development Bank Shenzhen Branch
AC# 44301560040310230000
Relationship:
Balance Sheet (Consolidated)
Unit: CNY’000
|
|
as of Dec. 31, 2009 |
as
of Sep. 30, 2010 |
|
Cash & bank |
14,496,808 |
9,432,720 |
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Bills receivable |
779,112 |
2,444,720 |
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Inventory |
9,324,800 |
13,656,000 |
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Accounts receivable |
15,319,215 |
17,179,000 |
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Accounts receivable Management |
2,870,221 |
0 |
|
Other receivables |
1,059,829 |
1,375,230 |
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Advances to suppliers |
355,422 |
532,616 |
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Construction receivable |
11,388,496 |
0 |
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Other current assets |
0 |
15,761,814 |
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|
------------------ |
------------------ |
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Current assets |
55,593,903 |
60,382,100 |
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Financial assets available for sale |
253,760 |
268,636 |
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Long-term accounts receivable |
383,749 |
944,484 |
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Long-term accounts receivable Management |
2,968,629 |
0 |
|
Fixed assets net value |
4,714,533 |
5,314,360 |
|
Projects under construction |
1,332,735 |
1,694,390 |
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Long term investment |
440,282 |
908,903 |
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Other assets |
2,654,731 |
6,638,827 |
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------------------ |
------------------ |
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Total assets |
68,342,322 |
76,151,700 |
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============= |
============= |
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Short loans |
4,906,503 |
5,594,670 |
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Bills payable |
8,484,861 |
7,494,260 |
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Accounts payable |
13,046,804 |
14,364,500 |
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Construction payable |
2,519,706 |
0 |
|
Accounts payable Management |
2,870,221 |
0 |
|
Advances from clients |
2,337,628 |
3,186,420 |
|
Accrued payable |
2,398,720 |
2,115,380 |
|
Tax payable |
77,715 |
-650,359 |
|
Dividends payable |
16,966 |
127,514 |
|
Other payable |
2,213,477 |
8,991,187 |
|
Deferred income |
92,830 |
0 |
|
Estimated liabilities |
189,664 |
193,828 |
|
Long-term liabilities due with in one year |
1,939,965 |
3,030,870 |
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------------------ |
------------------ |
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Current liabilities |
41,095,060 |
44,448,270 |
|
Non-Current liabilities |
9,298,396 |
9,181,930 |
|
|
------------------ |
------------------ |
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Total liabilities |
50,393,456 |
53,630,200 |
|
Equities |
17,948,866 |
22,521,500 |
|
|
------------------ |
------------------ |
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Total liabilities & equities |
68,342,322 |
76,151,700 |
|
|
============= |
============= |
Income Statement (Consolidated)
Unit: CNY’000
|
|
as of Dec. 31, 2009 |
Jan. 1 to Sep. 30, 2010 |
|
Turnover |
60,272,563 |
46,062,300 |
|
Cost of goods sold |
40,623,339 |
30,457,600 |
|
Taxes and additional of main operation |
692,933 |
773,333 |
|
Research and development expense |
5,781,580 |
4,672,920 |
|
Sales expense |
7,044,382 |
6,404,580 |
|
Management expense |
2,567,928 |
1,927,260 |
|
Finance expense |
784,726 |
635,309 |
|
Investment income |
11,871 |
35,096 |
|
Non-operating income |
1,391,420 |
1,214,030 |
|
Non-operating expense |
130,841 |
69,343 |
|
Other expense |
725,383 |
295,951 |
|
Profit before tax |
3,324,742 |
2,075,130 |
|
Less: profit tax |
629,081 |
583,420 |
|
Profits |
2,695,661 |
1,491,710 |
Important Ratios
=============
|
|
as of Dec. 31, 2009 |
As of Sep. 30, 2010 |
|
*Current ratio |
1.35 |
1.36 |
|
*Quick ratio |
1.13 |
1.05 |
|
*Liabilities to assets |
0.74 |
0.70 |
|
*Net profit margin (%) |
4.47 |
3.24 |
|
*Return on total assets (%) |
3.94 |
1.96 |
|
*Inventory /Turnover ×365 |
56 days |
-- |
|
*Accounts receivable/Turnover ×365 |
93 days |
-- |
|
*Turnover/Total assets |
0.88 |
0.60 |
|
* Cost of goods sold/Turnover |
0.67 |
0.66 |
PROFITABILITY: FAIRLY GOOD
l
The
turnover of SC appears good in its line.
l
SC’s net
profit margin is fairly good.
l
SC’s return
on total assets is average.
l
SC’s
cost of goods sold is average, comparing with its turnover.
LIQUIDITY: AVERAGE
l
The
current ratio of SC is maintained in a normal level.
l
SC’s
quick ratio is maintained in a normal level.
l
The inventory of SC appears average.
l
The
accounts receivable of SC appears fairly large.
l
The
short-term loans of SC appear average.
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 average.
l
The risk
for SC to go bankrupt is low.
Overall financial condition of the SC:
Strong.
SC is well-known in
its industry with strong financial conditions. Credit dealings with SC in
favorable terms can be considered.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.45.32 |
|
|
1 |
Rs.70.54 |
|
Euro |
1 |
Rs.58.70 |
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
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 |
|
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 |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
|
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 |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
---- |
NB |
New Business |
---- |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or
its officials.