MIRA INFORM REPORT
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Report Date : |
29.04.2013 |
IDENTIFICATION DETAILS
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Name : |
HUASHENG FUJITEC ELEVATOR CO., LTD. |
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Registered Office : |
No. 7, Chunming Avenue, Economic And Technological Development Zone, Langfang, Hebei Province, 065001 Pr |
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Country : |
China |
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Financials (as on) : |
31.12.2012 |
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Date of Incorporation : |
12.12.1995 |
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Com. Reg. No.: |
130000400002092 |
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Legal Form : |
Chinese-Foreign Equity Joint Venture Enterprise |
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Line of Business : |
Manufacturing and selling elevator |
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No. of Employees : |
900 |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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, 2013
|
Country Name |
Previous Rating (31.12.2012) |
Current Rating (31.03.2013) |
|
China |
A2 |
A2 |
|
Risk Category |
ECGC
Classification |
|
Insignificant |
A1 |
|
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 2012 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 under 8% for 2012. An economic slowdown in Europe contributed to
China's, and is expected to further drag Chinese growth in 2013. 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
HUASHENG FUJITEC
ELEVATOR CO., LTD.
NO. 7, CHUNMING AVENUE, ECONOMIC AND
TECHNOLOGICAL DEVELOPMENT ZONE, LANGFANG, HEBEI PROVINCE, 065001 PR CHINA
TEL: 86 (0) 316-6086718-2160 FAX: 86 (0) 316-6082343
EXECUTIVE SUMMARY
INCORPORATION DATE : dEC. 12, 1995
REGISTRATION NO. : 130000400002092
REGISTERED LEGAL FORM : CHINESE-FOREIGN EQUITY
JOINT VENTURE ENTERPRISE
STAFF STRENGTH :
900
REGISTERED CAPITAL : USD 27,379,000
BUSINESS LINE :
MANUFACTURING AND TRADING
TURNOVER :
CNY 2,317,200,000 (AS OF DEC. 31, 2012)
EQUITIES :
CNY 688,790,000 (AS OF DEC. 31, 2012)
PAYMENT :
AVERAGE
MARKET CONDITION : COMPETITIVE
FINANCIAL CONDITION : stable
OPERATIONAL TREND : STEADY
GENERAL REPUTATION : AVERAGE
EXCHANGE RATE :
CNY 6.1673= 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 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 Dec. 12,
1995.
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.
SC’s registered business scope includes manufacturing passenger
elevator, freight elevator, and related parts and escalators, parking equipment
parts, selling self-produced products, transformation and after-sales
installation, maintenance (installation of special equipment maintenance permit
validity period as of Nov. 17, 2016), maintenance services, wholesaling and
retailing passenger elevators, lifts, escalators, parking equipment and related
parts.
SC is mainly
engaged in manufacturing and selling elevator.
Mr. Zhao Yao is legal representative and chairman of SC at
present.
SC is known
to have approx. 900 employees at present.
SC
is currently operating at the above stated address, and this address houses its
operating office and factory in the economic and technological development zone
of Langfang. Our checks reveal that SC owns the total premise, but the gross
area of the premise is unspecific.
http://www.fujitec.com.cn
The website belongs to Fujitec. It includes the information on SC and its
related companies. The design is professional and the content is well
organized. At present it is in Chinese and English versions.
No significant changes were found during our checks with the local
Administration for Industry and Commerce.
For the past two years there is no record of litigation.
MAIN SHAREHOLDERS:
Name %
of Shareholding
Fujitec Co., Ltd. (Japan) 60
Chinatex Corporation 40
Fujitec Co., Ltd. (Japan)
=================
Fujitec Co., Ltd. was established in 1948 as
a specialized elevator manufacturer. Today, Fujitec builds upon its years of
expertise and experience as an integrated manufacturer of a wide variety of
people-moving systems, including elevators, escalators and autowalks (moving
walkways). These state-of-the-art products represent Fujitec’s integrated
operations covering phase of the product’s lifecycle from development to sales
and installation to maintenance.
Incorporation date: February 9, 1948
President and CEO: Takakazu Uchiyama
Web: https://www.fujitec.co.jp/
Chinatex Corporation
================
Chinatex
Corporation is a large-scale group corporation under direct administration of
the State-Owned Assets Supervision and the Administration Commission of the
State Council and one of the 500 largest enterprises of China.
During
the past nearly 60 years, Chinatex has been adhering to the strategy of
scientific development and innovation, and has successfully transformed from a
traditional foreign trade company into a renowned large-scale group company
with supply-chain management ability and a leading and influential position in
related industries. in relevant business sectors.
Incorporation
date: Dec. 15, 1983
Registration
no.: 100000000001470
Registered
capital: CNY 421,780,000
Legal
rep.: Zhao Boya
Legal
form: State-owned enterprise
E-mail: Webmaster@chinatex.com
Tel: 010-65281122
Add: Chinatex Building, No. 19,
Jianguomennei Street, Beijing
l Legal
Representative and Chairman:
Mr. Zhao Yao, in his
Working Experience(s):
At present Working in SC as legal representative and
chairman.
Also working in Shanghai Huasheng
Fujitec Escalator Co., Ltd. as legal representative.
l General Manager:
Mr. Tsuyama Keiji , Japanese. He is currently
responsible for the daily management of SC.
Working Experience(s):
At present Working in SC as general manager.
SC is mainly
engaged in manufacturing and selling elevator.
SC’s products mainly
include: passenger elevator, freight elevator, moving walkways, etc.
SC sources its
materials 100% from domestic market. SC sells 90% of its products in domestic
market, and 10% to the overseas market.
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.
Note: SC’s management declined to release its main clients and
suppliers.
Shanghai
Huasheng Fujitec Escalator Co., Ltd.
=================================
Incorporation
date: Jan. 29, 2002
Registration
no.: 310000400289939
Registered
capital: USD 15,251,855
Legal
rep.: Zhao Yao
Legal
form: Chinese-foreign equity joint venture enterprise
Fujitec
Shanghai Sourcing Center Co., Ltd.
==============================
Incorporation
date: Dec. 18, 2006
Registration
no.: 310000400494778
Registered
capital: USD 30,835,000
Legal
rep.: Uchiyama Yasuyuki
Legal
form: Wholly foreign-owned enterprise
Tel:
86 (0) 21-67601515/67601462
Fax: 86 (0) 21-67601463
Beijing
Huasheng Fujitec Elevator Co., Ltd.
=================================
Incorporation
date: June 1, 1998
Registration
no.: 110116004901291
Registered
capital: CNY 2,000,000
Legal
rep.: Qiao Shaobin
Legal
form: Limited liabilities co.
SC
is known to have the following branches:
Huasheng
Fujitec Elevator Co.,
Ltd. Tianjin Branch
=====================================
Incorporation
date: June 24, 2005
Registration
no.: 120000400040911
Principal:
Chen Xiaoyuan
Huasheng
Fujitec Elevator Co.,
Ltd. Hangzhou Branch
========================================
Incorporation
date: Oct. 28, 2002
Registration
no.: 330100500005505
Principal:
Zhang Zhenjian
Huasheng
Fujitec Elevator Co.,
Ltd. Fujian Branch
====================================
Registration
no.: 350000500000267
Principal:
Chen Qiang
Huasheng
Fujitec Elevator Co.,
Ltd. Chengdu Branch
=======================================
Registration
no.: 510100500025030
Principal:
Jiang Xiaojie
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 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.
Industrial and Commercial Bank of China Langfang Development Zone
Sub-branch
AC#：N/A
Relationship:
Normal.
Balance Sheet
Unit: CNY’000
|
|
as of Dec. 31, 2011 |
as of Dec. 31, 2012 |
|
Cash & bank |
191,280 |
165,630 |
|
Notes receivable |
14,510 |
3,880 |
|
Inventory |
282,990 |
370,560 |
|
Accounts
receivable |
543,790 |
592,870 |
|
Advances to
suppliers |
59,310 |
83,650 |
|
Other
receivables |
46,050 |
47,940 |
|
Other current
assets |
115,000 |
380,000 |
|
|
------------------ |
------------------ |
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Current assets |
1,252,930 |
1,644,530 |
|
Long-term
investments |
0 |
0 |
|
Fixed assets net
value |
117,180 |
111,560 |
|
Projects under
construction |
2,920 |
21,840 |
|
Long-term
deferred expenses |
1,480 |
1,520 |
|
Intangible
assets |
19,340 |
18,070 |
|
Other assets |
0 |
0 |
|
|
------------------ |
------------------ |
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Total assets |
1,393,850 |
1,797,520 |
|
|
============= |
============= |
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Short loans |
0 |
0 |
|
Accounts payable |
320,250 |
409,750 |
|
Advances from
customers |
501,010 |
611,150 |
|
Employee pay
payable |
32,230 |
54,970 |
|
Taxes payable |
7,450 |
22,390 |
|
Other accounts
payable |
8,510 |
10,470 |
|
Other current
liabilities |
0 |
0 |
|
|
----------------- |
----------------- |
|
Current
liabilities |
869,450 |
1,108,730 |
|
Long term
liabilities |
0 |
0 |
|
|
------------------ |
------------------ |
|
Total
liabilities |
869,450 |
1,108,730 |
|
Shareholders
equities |
524,400 |
688,790 |
|
|
------------------ |
------------------ |
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Total
liabilities & equities |
1,393,850 |
1,797,520 |
|
|
============= |
============= |
Income Statement
Unit: CNY’000
|
|
as of Dec. 31, 2012 |
|
Turnover |
2,317,200 |
|
Cost of goods sold |
1,758,970 |
|
Taxes and additional of main operation |
21,260 |
|
Income from
other operation |
-5,770 |
|
Sales expense |
188,980 |
|
Management expense |
51,340 |
|
Finance expense |
-860 |
|
Asset impairment loss |
24,010 |
|
Investment
income |
15,020 |
|
Non-operating
income |
630 |
|
Non-operating expense |
290 |
|
Profit before
tax |
283,090 |
|
Less: profit tax |
70,770 |
|
Net profit |
212,320 |
Important Ratios
=============
|
|
As of Dec. 31, 2011 |
As of Dec. 31, 2012 |
|
*Current ratio |
1.44 |
1.48 |
|
*Quick ratio |
1.12 |
1.15 |
|
*Liabilities
to assets |
0.62 |
0.62 |
|
*Net profit
margin (%) |
/ |
9.16 |
|
*Return on
total assets (%) |
/ |
11.81 |
|
*Inventory
/Turnover ×365 |
/ |
59 days |
|
*Accounts
receivable/Turnover ×365 |
/ |
94 days |
|
*Turnover/Total
assets |
/ |
1.29 |
|
* Cost of
goods sold/Turnover |
/ |
0.76 |
PROFITABILITY:
FAIRLY GOOD
l
The turnover of SC appears good in its line in
2012.
l
SC’s net profit margin is fairly good in 2012.
l
SC’s return on total assets is good in 2012.
l
SC’s cost of goods sold is average in 2012,
comparing with its turnover.
LIQUIDITY: AVERAGE
l
The current ratio of SC is maintained in a normal
level in both years.
l
SC’s quick ratio is maintained in a normal level in
both years.
l
The inventory of SC appears average in both years.
l
The accounts receivable of SC appears fairly large
in both years.
l
SC has no short-term loan in both years.
l
SC’s turnover is in an average level in 2012,
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 average.
Overall financial
condition of the SC: Stable.
SC is considered medium-sized in its line with stable financial
conditions.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.54.29 |
|
|
1 |
Rs.83.88 |
|
Euro |
1 |
Rs.70.67 |
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%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.