MIRA INFORM REPORT

 

 

Report Date :

08.04.2013

 

IDENTIFICATION DETAILS

 

Name :

SCHINDLER (CHINA) ELEVATORS CO., LTD.

 

 

Registered Office :

No. 40, Wenshui Road, Shanghai 200072 Pr

 

 

Country :

China

 

 

Financials (as on) :

31.12.2012

 

 

Date of Incorporation :

05.07.1980

 

 

Com. Reg. No.:

310000400000033

 

 

Legal Form :

Wholly Foreign-Owned Enterprise

 

 

Line of Business :

Manufacturing and selling elevators

 

 

No. of Employees :

1,710

 

RATING & COMMENTS

 

MIRA’s Rating :

B

 

RATING

STATUS

PROPOSED CREDIT LINE

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

Small

 

Status :

Moderate

Payment Behaviour :

Slow

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 30th, 2012

 

Country Name

Previous Rating

(31.03.2011)

Current Rating

(30.06.2012)

China

A2

A2

 

Risk Category

ECGC Classification

Insignificant

 

A1

Low

 

A2

Moderate

 

B1

High

 

B2

Very High

 

C1

Restricted

 

C2

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 and address

 

SCHINDLER (CHINA) ELEVATORS CO., LTD.

NO. 40, WENSHUI ROAD, SHANGHAI 200072 PR CHINA

TEL: 86 (0) 21-56650991

FAX: 86 (0) 21-56032562

 

 

EXECUTIVE SUMMARY

 

Date of Registration          : july 5, 1980

REGISTRATION NO.                  : 310000400000033

LEGAL FORM                           : Wholly foreign-owned enterprise

CHIEF EXECUTIVE                        : ZHENG RUIHENG (LEGAL REPRESENTATIVE)

REGISTERED CAPITAL             : CNY 714,601,796

staff                                      : 1,710

BUSINESS CATEGORY             : manufacturing

Revenue                                : CNY 3,793,530,000 (AS OF DEC. 31, 2012)

EQUITIES                                 : CNY -390,273,000 (AS OF DEC. 31, 2012)

WEBSITE                                 : www.schindler.cn

E-MAIL                                     : N/A

PAYMENT                                : AVERAGE

MARKET CONDITION                : AVERAGE

FINANCIAL CONDITION             : FAIR

OPERATIONAL TREND  : fair

GENERAL REPUTATION           : AVERAGE

EXCHANGE RATE                     : CNY 6.21 = 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

 

SC was established as a wholly foreign-owned enterprise of PRC with State Administration of Industry & Commerce (SAIC) under registration No.: 310000400000033 on July 5, 1980.

 

SC’s Organization Code Certificate No.: 62590126-3

SC’s registered capital: CNY 714,601,796

 

SC’s paid-in capital: CNY 714,601,796

 

Registration Change Record:-

 

Date

Change of Contents

Before the change

After the change

2004

Company Name

China Schindler Elevator Co., Ltd.

Schindler (China) Elevator Co., Ltd

--

Registration No.

036758

310000400000033

2010

Shareholder (s) (% of Shareholding)

Schindler Holding AG (Switzerland)

92.82%

Jardine Schindler (Far East) Holding Inc. (Hong Kong)7.18%

Schindler Holding AG (Switzerland) 100%

--

Registered Capital

CNY 564,601,796

CNY 714,601,796

 

Current Co search indicates SC’s shareholders & chief executives are as follows:-

 

Name of Shareholder (s)

% of Shareholding

Schindler Holding AG (Switzerland)

100

 

SC’s Chief Executives:-

 

Position

Name

Legal Representative, Chairman, and General Manager

Zheng Ruiheng

 

 

RECENT DEVELOPMENT

 

No recent development was found during our checks at present.

 

 

SHAREHOLDER CHART & BACKGROUND

 

 

Name                                                                                                   % of Shareholding

 

 

Schindler Holding AG (Switzerland)                                                                     100

---------------------------------------------

Seestrasse 55

6052 Hergiswil, Switzerland

Tel. +41 41 632 85 50

Fax +41 41 445 31 34

Web: http://www.schindler.com

 

MANAGEMENT

 

Zheng Ruiheng , Legal Representative, Chairman, and General Manager

---------------------------------------------------------------------------------------------------------

Ø         Gender: M

Ø         Qualification: Doctor’s degree

Ø         Working experience (s):

 

At present, working in SC as legal representative, chairman, and general manager

Also working in Suzhou Schindler Elevator Co., Ltd., and Schindler Electronics (Suzhou) Co., Ltd. as legal representative

 

 

BUSINESS OPERATION

 

SC’s registered business scope includes manufacturing, developing, installing, maintaining, repairing and modernizing elevators, escalators, moving walks and their accessories and components; designing new products and developing the relevant technology; and selling the above products of Schindler brand.

 

SC is mainly engaged in manufacturing and selling elevators.

Brand: Schindler.

 

SC’s products mainly include: elevators.

     

 

SC sources its materials 85% from domestic market, mainly Jiangsu, and 15% from overseas market. SC sells 85% of its products in domestic market, and 15% to overseas market.

 

The buying terms of SC include T/T, L/C and Credit of 30-60 days. The payment terms of SC include T/T, L/C and Credit of 30-60 days.

 

*Major Supplier:

-------------------

Suzhou Schindler Elevator Co., Ltd.

 

Staff & Office:

--------------------------

SC is known to have approx. 1,710 staff at present.

 

SC owns an area as its operating office and factory, but the detailed information is unknown.

 

 

RELATED COMPANY

 

Following are SC’s branches:

-------------------------------------

Schindler (China) Elevators Co., Ltd. Guiyang Branch

Schindler (China) Elevators Co., Ltd. Ningxia Branch

Schindler (China) Elevators Co., Ltd. Xi’an Branch

Schindler (China) Elevators Co., Ltd. Jinan Branch

Schindler (China) Elevators Co., Ltd. Kunming Branch

Schindler (China) Elevators Co., Ltd. Henan Branch

Schindler (China) Elevators Co., Ltd. Chengdu Branch

Schindler (China) Elevators Co., Ltd. Chongqing Branch

Schindler (China) Elevators Co., Ltd. Dalian Branch

Schindler (China) Elevators Co., Ltd. Tianjin Branch

Schindler (China) Elevators Co., Ltd. Hebei Branch

Schindler (China) Elevators Co., Ltd. Changchun Branch

Schindler (China) Elevators Co., Ltd. Shandong Branch

Schindler (China) Elevators Co., Ltd. Shenyang Branch

Schindler (China) Elevators Co., Ltd. Wuhan Branch

Schindler (China) Elevators Co., Ltd. Shanghai Branch

Schindler (China) Elevators Co., Ltd. Harbin Branch

Schindler (China) Elevators Co., Ltd. Beijing Branch

Schindler (China) Elevators Co., Ltd. Beijing Elevator Factory

 

Sister Companies:

-----------------------

Suzhou Schindler Elevator Co., Ltd.

Schindler Electronics (Suzhou) 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:

 

Industrial and Commercial Bank of China Shanghai Branch Lingshi Road Sub-branch

 

AC#: 100124-8519300046602

 

 

FINANCIALS

 

Financial Summary

Unit: CNY’000

As of Dec. 31, 2011

As of Dec. 31, 2012

Current assets

1,564,043

2,271,764

Long term investment

250,840

266,884

Fixed assets

38,478

141,904

Intangible assets

992

126,555

 

-------------

-------------

Total assets

2,180,671

2,918,716

 

-------------

-------------

Current liabilities

2,219,552

3,308,989

Long term liabilities

0

0

Total liabilities

2,219,552

3,308,989

Equities

-38,881

-390,273

 

-------------

-------------

Revenue

2,997,279

3,793,530

     Cost of sales

2,529,343

3,205,677

Profit before tax

-111,996

-72,363

Less: profit tax

15

5,127

Profits

-112,011

-77,490

 

Note: The detailed financials for Y2011 and Y2012 are not available in SAIC.

 

Important Ratios

=============

 

As of Dec. 31, 2011

As of Dec. 31, 2012

*Current ratio

0.70

0.69

*Liabilities to assets

1.02

1.13

*Net profit margin (%)

-3.74

-2.04

*Return on total assets (%)

-5.14

-2.65

* Revenue/Total assets

1.37

1.30

* Cost of sales / Revenue

0.84

0.85

 

 

 

 

FINANCIAL COMMENTS

 

PROFITABILITY: FAIR

l         The revenue of SC appears good in its line.

l         SC’s net profit margin is fair in both years.

l         SC’s return on total assets is fair in both years.

l         SC’s cost of goods sold is average, comparing with its revenue.

 

LIQUIDITY: AVERAGE

l         SC’s revenue is in an average good level, comparing with the size of its total assets.

 

LEVERAGE: FAIR

l         The debt ratio of SC is high.

l         The risk for SC to go bankrupt is average.

 

Overall financial condition of the SC: Fair.

 

 

CONCLUSIONS

 

SC is considered large-sized in its line with fair financial conditions. Taking into consideration of SC’s good background, credit dealings with SC should be confined into small amount at present.

 

 

 

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.54.88

UK Pound

1

Rs.83.54

Euro

1

Rs.70.90

 

 

INFORMATION DETAILS

 

Report Prepared by :

PRL

 

 

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%)

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.