MIRA INFORM REPORT
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Report Date : |
12.09.2012 |
IDENTIFICATION DETAILS
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Name : |
ZTT INTERNATIONAL LTD. |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2011 |
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Date of Incorporation : |
11.11.2010 |
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Com. Reg. No.: |
320691000060507 |
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Legal Form : |
One-Person Limited Liabilities Company |
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Line of Business : |
International
Trade |
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No. of Employees
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175 |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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Status : |
Satisfactory |
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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 – March 31st, 2012
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Country Name |
Previous Rating (31.12.2011) |
Current Rating (31.03.2012) |
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China |
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 |
CHINA - ECONOMIC OVERVIEW
Since the late 1970s China has moved from a closed, centrally planned
system to a more market-oriented one that plays a major global role - in 2010
China became the world's largest exporter. Reforms began with the phasing out
of collectivized agriculture, and expanded to include the gradual
liberalization of prices, fiscal decentralization, increased autonomy for state
enterprises, creation of a diversified banking system, development of stock
markets, rapid growth of the private sector, and opening to foreign trade and
investment. China has implemented reforms in a gradualist fashion. In recent
years, China has renewed its support for state-owned enterprises in sectors it
considers important to "economic security," explicitly looking to
foster globally competitive national champions. After keeping its currency
tightly linked to the US dollar for years, in July 2005 China revalued its
currency by 2.1% against the US dollar and moved to an exchange rate system
that references a basket of currencies. From mid 2005 to late 2008 cumulative
appreciation of the renminbi against the US dollar was more than 20%, but the
exchange rate remained virtually pegged to the dollar from the onset of the
global financial crisis until June 2010, when Beijing allowed resumption of a
gradual appreciation. The restructuring of the economy and resulting efficiency
gains have contributed to a more than tenfold increase in GDP since 1978.
Measured on a purchasing power parity (PPP) basis that adjusts for price
differences, China in 2010 stood as the second-largest economy in the world
after the US, having surpassed Japan in 2001. The dollar values of China's
agricultural and industrial output each exceed those of the US; China is second
to the US in the value of services it produces. Still, per capita income is
below the world average. The Chinese government faces numerous economic
challenges, including: (a) reducing its high domestic savings rate and
correspondingly low domestic demand; (b) sustaining adequate job growth for
tens of millions of migrants and new entrants to the work force; (c) reducing
corruption and other economic crimes; and (d) containing environmental damage
and social strife related to the economy's rapid transformation. Economic development
has progressed further in coastal provinces than in the interior, and by 2011
more than 250 million migrant workers and their dependents had relocated to
urban areas to find work. One consequence of population control policy is that
China is now one of the most rapidly aging countries in the world.
Deterioration in the environment - notably air pollution, soil erosion, and the
steady fall of the water table, especially in the North - is another long-term
problem. China continues to lose arable land because of erosion and economic
development. The Chinese government is seeking to add energy production
capacity from sources other than coal and oil, focusing on nuclear and
alternative energy development. In 2010-11, China faced high inflation
resulting largely from its credit-fueled stimulus program. Some tightening
measures appear to have controlled inflation, but GDP growth consequently
slowed to near 9% for 2011. An economic slowdown in Europe is expected to
further drag Chinese growth in 2012. Debt overhang from the stimulus program,
particularly among local governments, and a property price bubble challenge
policy makers currently. The government's 12th Five-Year Plan, adopted in March
2011, emphasizes continued economic reforms and the need to increase domestic
consumption in order to make the economy less dependent on exports in the
future. However, China has made only marginal progress toward these rebalancing
goals.
Source : CIA
Company name & address
ZTT INTERNATIONAL LTD.
no. 5 zhong tian road,
economic & technological development zone, jiangsu province 226009 PR CHINA
TEL: 86 (0)
513-83599669/83599470
FAX: 86 (0)
513-83599670
EXECUTIVE SUMMARY
Date of Registration : november 11, 2010
REGISTRATION NO. : 320691000060507
LEGAL FORM : one-person Limited liabilities company
REGISTERED CAPITAL :
cny 100,000,000
staff : 175
BUSINESS CATEGORY :
trading
Revenue : CNY 271,256,000 (AS OF DEC. 31, 2011)
EQUITIES : CNY 105,938,000 (AS OF DEC. 31, 2011)
WEBSITE : N/A
E-MAIL :
N/A
PAYMENT : AVERAGE
Recommended Credit Limit: UP TO USD
500,000
MARKET CONDITION : competitive
FINANCIAL CONDITION : FAIRLY good
OPERATIONAL TREND :
FAIRLY
STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE : CNY 6.31 = USD 1
Adopted abbreviations
(As Follows)
SC - Subject Company (the company inquired by you)
N/A – Not available
CNY – China Yuan Ren
Min Bi
OPERATIONAL TREND & GENERAL
REPUTATION
This section aims at indicating the relative positions of SC in respect
of its operational trend & general reputation
Operational Trend:- General
Reputation:-
Upward Excellent
Steady Good
Fairly Steady Fairly
Good
Ordinary Average
Fair Fair
Stagnant Detrimental
Downward Not
known
Not known Not
yet be determined
Not yet be determined
LEGAL STATUS & HISTORY
***Note: SC’s current address should be the heading
one, while the given address (No. 6 Zhongtian Road, Nantong Economic &
Technological Development Zone, Jiangsu Province) was its former one.
SC was
established as one-person limited liabilities company of PRC with State
Administration of Industry & Commerce (SAIC) under registration No.: 320691000060507 on November 11, 2010.
SC’s Organization Code Certificate
No.: 56433850-9
SC’s registered capital: cny 100,000,000
SC’s paid-in capital: cny 100,000,000
Registration Change Record:
No significant changes of SC have
been noted in SAIC since its incorporation.
Current Co search indicates SC’s shareholders & chief
executives are as follows:-
|
Name of Shareholder (s) |
% of Shareholding |
|
Jiangsu Zhongtian Technology
Co., Ltd. |
100 |
SC’s Chief Executives:-
|
Position |
Name |
|
Legal Representative, Chairman,
and General Manager |
Xue Jiping |
|
Director |
Xue Chi |
|
Qu Zhi |
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|
Tong Jiangbing |
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|
Gao Hongshi |
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Supervisor |
Gong Jun |
RECENT DEVELOPMENT
No recent development was found during our checks at present.
SHAREHOLDER CHART & BACKGROUND
Name %
of Shareholding
Jiangsu Zhongtian Technology
Co., Ltd. 100
------------------------------------------------
Date of Registration: February 9, 1996
Registration No.: 320000000013986
Legal Form: Shares Limited
Company
Registered Capital: CNY 391,391,000
Jiangsu Zhongtian Technology Co., Ltd. listed in
Shanghai Stock Exchange in October 2002 with the stock number of 600522.
Address: Economic & Technological
Development Zone, Jiangsu Province
Tel: 86 (0) 513-83599505
Fax: 86 (0) 513-83599504
MANAGEMENT
Xue Jiping, Legal Representative, Chairman and General Manager
--------------------------------------------------------------------------------------------------
Ø
Gender: M
Ø
ID# 320623195103184530
Ø
Age: 61
Ø
Senior Economist
Ø
Qualification:
University
Ø
Working
experience (s):
At present, working in SC as legal representative, chairman
and general manager
Also
working in Jiangsu Zhongtian Technology Co., Ltd. as
legal representative
Director
-----------
Xue Chi ID#320623197901204531
Qu Zhi ID#210219197509214311
Tong Jiangbing ID#320622197411182791
Gao Hongshi ID#320624196504082018
Supervisor
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Gong Jun ID#320623198202137012
BUSINESS
OPERATION
SC’s registered business scope includes importing and
exporting commodities and technology; domestic trade; developing and
manufacturing cable products and equipment; and storage.
SC is
mainly engaged in international trade.
SC’s
products mainly include: optical fiber, optical cable, submarine cable, etc.
SC sources its materials 100% from domestic
market, mainly Jiangsu. SC sells 70% of its products in domestic market, and
30% to overseas market, mainly U.S.A., Southeast Asia, etc.
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 Credit of 30-60 days.
*Major Supplier:
==============
Jiangsu Zhongtian Technology
Co., Ltd.
Staff & Office:
--------------------------
SC is
known to have approx. 175
staff at present.
SC rents an area
as its operating office and factory, but the detailed information is unknown.
RELATED COMPANY
Zhongtian
Hitachi Fiber Optic Cable Co., Ltd.
Zhongtian
Technology Optical Fiber Co., Ltd.
Jiangsu Zhongtian
Technology Investment Management Co., Ltd.
Nantong
Zhongtian Jiangdong Property Co., Ltd.
Shanghai
Zhongtian Aluminum Wire Co., Ltd.
Technologies
Submarine Optic Fiber Cable Co., Ltd.
Zhongtian
Hitachi Radio Frequency Cable Co., Ltd.
Guangdong
Zhongtian Technology Optical Cable Co., Ltd.
Zhongtian
Technology (Shenyang) Optical Cable Co., Ltd.
PAYMENT
Overall payment appraisal:
( ) Excellent ( ) Good (X) Average ( ) Fair ( ) Poor ( ) Not yet be 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’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.
BANKING
Basic Bank:
Bank
of Communications
AC#: N/A
FINANCIALS
Balance Sheet
|
Unit: CNY’000 |
As
of Dec. 31, 2011 |
|
50,367 |
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Accounts
receivable |
98,958 |
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Advances to
suppliers |
0 |
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Other receivable |
14,165 |
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Inventory |
498 |
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Non-current
assets within one year |
0 |
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Other current
assets |
11,026 |
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------------------ |
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Current assets |
175,014 |
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Fixed assets |
234 |
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Long-term
prepaid expenses |
0 |
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Deferred income
tax assets |
0 |
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Other
non-current assets |
875 |
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------------------ |
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Total assets |
176,123 |
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============= |
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Short-term loans |
0 |
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Notes payable |
0 |
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Accounts payable |
24,418 |
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Wages payable |
0 |
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Taxes payable |
0 |
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Advances from
clients |
46,926 |
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Other payable |
71 |
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Other current liabilities |
-1,230 |
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------------------ |
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Current
liabilities |
70,185 |
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Non-current
liabilities |
0 |
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Total
liabilities |
70,185 |
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Equities |
105,938 |
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------------------ |
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Total
liabilities & equities |
176,123 |
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============= |
Income Statement
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Unit: CNY’000 |
As of Dec. 31,
2011 |
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Revenue |
271,256 |
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Cost of sales |
226,702 |
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Sales expense |
32,043 |
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Management expense |
240 |
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Finance expense |
-148 |
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Profit before
tax |
8,108 |
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Less: profit tax |
2,170 |
|
5,938 |
Important Ratios
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|
|
As
of Dec. 31, 2011 |
|
*Current ratio |
2.49 |
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*Quick ratio |
2.49 |
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*Liabilities
to assets |
0.40 |
|
*Net profit
margin (%) |
2.19 |
|
*Return on
total assets (%) |
3.37 |
|
*Inventory /
Revenue ×365 |
1 day |
|
*Accounts
receivable/ Revenue ×365 |
134 days |
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*
Revenue/Total assets |
1.54 |
|
* Cost of
sales / Revenue |
0.84 |
FINANCIAL COMMENTS
PROFITABILITY:
FAIRLY GOOD
l
The revenue of SC appears
fairly good in its line.
l
SC’s net profit margin is average.
l
SC’s return on total assets is average.
l
SC’s cost of sales is average, comparing with its revenue.
LIQUIDITY:
FAIRLY GOOD
l
The current ratio of SC is maintained in a fairly good
level.
l
SC’s quick ratio is maintained in a fairly good
level.
l
The inventory of SC appears small.
l
The accounts receivable of SC appears large.
l
SC has no short-term loans in 2011.
l
SC’s revenue is in an
average level, comparing with the size of its total assets.
LEVERAGE:
AVERAGE
l
The debt ratio of SC is low.
l
The risk for SC to go bankrupt is average.
Overall financial
condition of the SC: Fairly Good.
CONCLUSIONS
SC is considered medium-sized in its line with fairly good
financial conditions. The large amount of accounts receivable may be a threat
to SC’s financial condition. But taking into consideration of SC’s good
background, general performance, reputation as well as market conditions, a
credit line up to USD 500,000 appears acceptable.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.55.52 |
|
|
1 |
Rs.88.84 |
|
Euro |
1 |
Rs.70.85 |
INFORMATION DETAILS
|
Report Prepared
by : |
PDT |
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 |
|
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 |
|
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NB |
New Business |
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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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.